Question
1. Consider a semi-annual coupon bond maturing in 5 years. The face value of this bond is $1000. The coupon rate is 6%. Calculate the
1. Consider a semi-annual coupon bond maturing in 5 years. The face value of this bond is $1000. The coupon rate is 6%. Calculate the price of this bond, assuming the yield to maturity is 7.5%.
2. Suppose you hold this bond for one year and then sell it just after receiving a coupon payment. Suppose the yield to maturity is now 6.0% Calculate the price at which you sold the bond.
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
13th Edition
1337395080, 9781337395083
