Coupons payable semiannually is redeemable at maturity

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Reference no: EM13895432

A 9% bond with a 1,000 par values and coupons payable semiannually is redeemable at maturity for 1,100. At a purchase price P, the bond yields a nominal interest rate at 8%, compounded semiannually, and a present value of the redemption amount is 190. Determine P.

A. 1050, B. 1085, C. 1165, D. 1215

Reference no: EM13895432

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Coupons payable semiannually is redeemable at maturity : A 9% bond with a 1,000 par values and coupons payable semiannually is redeemable at maturity for 1,100. At a purchase price P, the bond yields a nominal interest rate at 8%, compounded semiannually, and a present value of the redemption amount is 190..

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