Then how much should you be willing to pay for the bond


You are considering a 25-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 8.59%, then how much should you be willing to pay for the bond? Round your answer to two decimal places.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Then how much should you be willing to pay for the bond
Reference No:- TGS0641088

Expected delivery within 24 Hours