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A 10-year bond with a 9 percent semiannual coupon is currently selling at par. A 10-year bond with a 9 percent annual coupon has the
A 10-year bond with a 9 percent semiannual coupon is currently selling at par. A 10-year bond with a 9 percent annual coupon has the same risk, and therefore, the same effective annual return as the semiannual bond. If the annual coupon bond has a face value of $1,000, calculate what will be its price?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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