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Consider the following Nestle Inc bond: maturity: 10 years, coupon rate: 6% (paid semi-annually), face value:...

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Finance

Consider the following Nestle Inc bond: maturity: 10 years,coupon rate: 6% (paid semi-annually), face value: $1000. Yourinvestment advisor has told you that the yield-to-maturity on thisbond is 6.5%.

What should be the price of this bond?

Answer & Explanation Solved by verified expert
3.9 Ratings (543 Votes)
Solution The Price of the bond of Nestle Inc bond should be 96365 964 when rounded off to the nearest    See Answer
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Transcribed Image Text

Consider the following Nestle Inc bond: maturity: 10 years,coupon rate: 6% (paid semi-annually), face value: $1000. Yourinvestment advisor has told you that the yield-to-maturity on thisbond is 6.5%.What should be the price of this bond?

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