Explore BrainMass

Explore BrainMass

    Bond Value Semiannual Payments

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Assume that you wish to purchase a 25yr bond that has a maturity value of $1000 and makes semiannual int payments of 45. If you require a 7 percent yield to maturity on this investments, what is the maximum orice you should be willing to pay for the bond?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:59 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/bond-value-semiannual-payments-311885

    Solution Preview

    Using financial calculator:

    N = 25 * 2 = 50, I/YR = 7% / 2 = 3.5%, FV ...

    Solution Summary

    This solution provides a detailed, step by step explanation of the given question.

    $2.19

    ADVERTISEMENT