You are considering purchasing a 1000 face value a rated


Question: You are considering purchasing a $1,000 face value A rated bond with 9.75 years to maturity and a coupon rate of 8.650% with semiannual payments. Today's Wall Steet Journal indicates that all A rated bonds with a maturity of 9.75 years have a YTM of 8.2500%. The largest sales commission you are willing to pay is 5%. How much would you be willing to pay for this bond today? (Show all computations and/or calculator inputs; work in at least 4 decimal places)

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Finance Basics: You are considering purchasing a 1000 face value a rated
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