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6. A 15-year $100 bond with 6% annual coupons matures at $105. (a) What is the price of the bond at an effective rate
6. A 15-year $100 bond with 6% annual coupons matures at $105. (a) What is the price of the bond at an effective rate of 5.81% using the first-order modified approximation? (b) What is the price of the bond at an effective rate of 5.81% using the first-order Macaulay approximation? (c) What is the actual price of the bond at an effective rate of 5.81%?
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Introduction to Corporate Finance What Companies Do
Authors: John Graham, Scott Smart
3rd edition
9781111532611, 1111222282, 1111532613, 978-1111222284
