Question
A 10-year bond with a 10,000 par value pays 8% annual coupons and has an initial price of P. The premium amortisation in the 3rd
A 10-year bond with a 10,000 par value pays 8% annual coupons and has an initial price of P. The premium amortisation in the 3rd payment is 125.48. The premium amortisation in the 7th pavement is 158.42. Determine P.
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To determine the initial price of the bond P we need to calculate the total premium amortization ove...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
