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Author Question: How much should an investor pay for a bond that returns $10,000 at the end of five years if market ... (Read 86 times)

itsmyluck

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on: Apr 25, 2021

Question 1

Goopple Inc., the internet technology firm, has a 10-year coupon bond with a coupon rate of 5% that yields 4.5%. The expected inflation rate is 1.5%, so the real yield on the bond is
◦ 1.96%.
◦ 3.00%.
◦ 4.50%.
◦ 2.96%.

Question 2

How much should an investor pay for a bond that returns $10,000 at the end of five years if market interest rates are 4%?
◦ $8,128.59
◦ $8,219.27
◦ $8,547.74
◦ $9,615.38
◦ Bond prices cannot be computed if the bond does not make coupon payments.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by itsmyluck on Apr 25, 2021

tuate

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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itsmyluck

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

Bigfoot1984

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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