Jakked NRG Drinxx is offering semiannual bonds that mature in 15 years. The bonds have a 6% coupon, and you want to buy 1000 par value. If similar bonds offer a 4% yield to maturity, what is a fair price for these bonds?
fair price for these bonds
=(1000*6%/2)*((1-(1+(4%/2))^(-15*2))/(4%/2))+1000/(1+(4%/2))^(15*2)
=1223.96
the above is answer..
Jakked NRG Drinxx is offering semiannual bonds that mature in 15 years. The bonds have a...
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