Question
A $10,000, 4.5% semi-annual coupon rate bond has 11 years until maturity. Calculate the price of the bond if the required return in the bond
A $10,000, 4.5% semi-annual coupon rate bond has 11 years until maturity. Calculate the price of the bond if the required return in the bond market is 5.2% compounded semiannually.
Answers:
a)$9,668.86
b)$13,153.01
c)$9,419.18
d)$11,021.60
e)$10,000
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Financial Markets And Institutions A Modern Perspective
Authors: Anthony Saunders, Marcia Millon Cornett, Marcia Cornett
2nd Edition
007294109X, 978-0072941098
