Current Attempt in Progress Sunland, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,053.26 today and your required rate of return was 6.3 percent. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and 15.25.) final answer to 2 decimal places, e.g. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) How much should you have paid for the bond?
Current Attempt in Progress Sunland, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,053.26 today and your required rate of return was 6.3 percent. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and 15.25.) final answer to 2 decimal places, e.g. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) How much should you have paid for the bond?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:Current Attempt in Progress
Sunland, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,053.26
today and your required rate of return was 6.3 percent. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and
final answer to 2 decimal places, e.g. 15.25.)
Excel Template
(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have
different values. When using this template, copy the problem statement from this screen for easy reference to the values you've
been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of
the problem.)
How much should you have paid for the bond?
Expert Solution
Step 1
Given data in the question is
The bond matures in 6 years & will pay an 8% Coupon semi-annually
If you paid $1053.26 today and the required rate of return was 6.3%.
The rate is paid semi-annually so =0.00315
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