Question
100,000 bonds are issued for $300 million worth of mortgages, each with a face value of $3,000. This MBB pays 4.5% coupon rate semiannually and
100,000 bonds are issued for $300 million worth of mortgages, each with a face value of $3,000. This MBB pays 4.5% coupon rate semiannually and matures in 12 years.
What is the price of this MBB if the current market interest rate is 3%?
options:
|
| $2,763 |
|
| $3,000 |
|
| $3,229 |
|
| $3,451 |
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Financial Statements
Authors: Inc. BarCharts
1st Edition
1423223837, 978-1423223832
