Question
What is the price of a 5 year bond that has a coupon rate of 7% with each coupon paid semi-annually? The current market rate
What is the price of a 5 year bond that has a coupon rate of 7% with each coupon paid semi-annually? The current market rate (Yield to maturity) is 6%. Assume a par value of $1,000.
A.$1,000
B.$1,043
C.$958
D.$901
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
5th edition
1111527369, 978-1111527365
