Daniele wants to calculate the price of an Italian government bond. It has a 1,000 par value

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Daniele wants to calculate the price of an Italian government bond. It has a €1,000 par value with a 1% coupon rate (with interest paid semiannually) that matures in five years. If the bond is priced to provide a required return of 2.5%, what is the bond’s current price?

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Fundamentals Of Investing

ISBN: 9780135175217

14th Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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