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# What is the maximum price you should be willing to pay for the bond?

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Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The bond has face value of \$1,000 and makes semiannual interest payments. If you require an 11.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

https://brainmass.com/economics/bonds/what-is-the-maximum-price-you-should-be-willing-to-pay-for-the-bond-194996

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Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The bond has face value of \$1,000 and makes semiannual interest payments. If you require an 11.0% nominal yield to maturity on this investment, what is ...

#### Solution Summary

This solution provides the step-by-step calculations fanbd explaination for the price you would be willing to pay for the bond.

\$2.19
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## Calculating the Maximum Price to Pay for a Bond

Assume that you wish to purchase a 10-year bond that has a maturity value of \$1,000 and makes semiannual interest payments of \$50. If you require a 10 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

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