A bond is currently trading at $99.50. The bond has nine months left to maturity and carries
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A bond is currently trading at $99.50. The bond has nine months left to maturity and carries a coupon of 3%. Coupons are paid semiannually (so the first coupon is due in three months). If the bond’s face value is $100, what is its ytm expressed with semiannual compounding? With continuous compounding?
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For the semiannual case the the situation requires an assumption about handling the short pe...View the full answer
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