Question
A 10-year Treasury bond with par value of $1,000 has a 6% p.a. coupon rate and pays interest every six months. The bond is four
A 10-year Treasury bond with par value of $1,000 has a 6% p.a. coupon rate and pays interest every six months. The bond is four years old and has just made its eighth payment. The market now requires a 7% p.a. return on the bond. What is the expected price of the bond?
| a. | $965.63 | |
| b. | $981.63 | |
| c. | $809.34 | |
| d. | $951.68 | |
| e. | $1,000.00 |
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Financial Literacy And Money Script A Caribbean Perspective
Authors: Christine Sahadeo
1st Edition
3319770748, 978-3319770741
