Question
A 1,000 par value of a 20 year bond with annual coupons and redeemable at maturity at 1050 is purchased for P to yielf an
A 1,000 par value of a 20 year bond with annual coupons and redeemable at maturity at 1050 is purchased for P to yielf an annual effective rate of 8.25%. The first coupon is 75. Each subsequent coupon is 3% greater than the preceding coupon. Detemine P.
A. 985, B. 1,000, C. 1,050, D. 1,075, E. 1,115
No excel spreadsheets, please.
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Monetary Policy Strategy
Authors: Frederic S. Mishkin
1st Edition
0262513374, 978-0262513371
