In: Finance
Pierre Dupont just received a cash gift from his grandfather. He
plans to invest in a five-year bond issued by Venice Corp. that
pays an annual coupon of 4.65 percent. If the current market rate
is 8.79 percent, what is the maximum amount Pierre should be
willing to pay for this bond? (Round answer to 2
decimal places, e.g. 15.25.)
Pierre should pay | $ |