So i have a test tomorrow, and can't figure this out. Any help would be awesome.
you have $22,589 and want to buy BoA 5 1/4% bonds. They want to know how many bonds you can buy.
The answer is 23, making the price of the BoA bonds $982.13. I cannot figure out how they find the price of the bond from just the 5 1/4% (yield im assuming).
thanks.
you have $22,589 and want to buy BoA 5 1/4% bonds. They want to know how many bonds you can buy.
The answer is 23, making the price of the BoA bonds $982.13. I cannot figure out how they find the price of the bond from just the 5 1/4% (yield im assuming).
thanks.