You intend to purchase a 10-year,$1,000 face value bond that pays interest of $60 every 6 months.If your simple annual required rate of return is 10 percent with semiannual compounding,how much should you be willing to pay for this bond?
A) $826.31
B) $1,086.15
C) $957.50
D) $1,431.49
E) $1,124.62

Question

Quizplus · Accepted Answer

The Answer of You intend to purchase a 10-year,$1,000 face value bond that pays interest of $60 every 6 months.If your simple annual required rate of return is 10 percent with semiannual compounding,how much should you be willing to pay for this bond?
A) $826.31
B) $1,086.15
C) $957.50
D) $1,431.49
E) $1,124.62

You Intend to Purchase a 10-Year,$1,000 Face Value Bond That