FIN 322 - Assume you have purchased a 25 year bond with a maturity value
Question # 00484407
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Updated on: 02/14/2017 02:11 AM Due on: 02/14/2017
Assume you have purchased a 25 year bond with a maturity value of $10,000.Thebond pays zero interest for the first three years, then pays $1,000 a year for thenext ten years and then pays $3,000 a year for the last 12 years. If you require a12% return on this investment, how much would you be willing to pay for thisbond?
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Rating:
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Solution: FIN 322 - Assume you have purchased a 25 year bond with a maturity value