5. Suppose Jennas Treasury bond has a coupon interest rate of 6.5%, paid semiannually, while current Treasury

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5. Suppose Jenna’s Treasury bond has a coupon interest rate of 6.5%, paid semiannually, while current Treasury bonds with the same maturity date have a yield to maturity of 5.4435% (expressed as an APR with semiannual compounding). If she has just received the bond’s 10th coupon, for how much can Jenna sell her treasury bond?

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Fundamentals Of Corporate Finance

ISBN: 9780134475561

4th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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