An investor uses £100,000 to buy 7-year bonds with a face value of £100. The bonds pay coupons semi-annually at a rate of 2%. The bonds currently yield 3% p.a. effective in the market. Calculate the price of a single bond £ Enter your answer as a decimal correct to 2 decimal places Calculate the net present value of the bond investment project at an interest rate of 0.5% p.a. £ Enter your answer correct to £100

An investor uses £100,000 to buy 7-year bonds with a face value of £100. The bonds pay coupons semi-annually at a rate of 2%. The bonds currently yield 3% p.a. effective in the market. Calculate the price of a single bond £ Enter your answer as a decimal correct to 2 decimal places Calculate the net present value of the bond investment project at an interest rate of 0.5% p.a. £ Enter your answer correct to £100

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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