Question
A 14-year 1,000 par value bond is redeemable at maturity for 1,100. It is bought at a price to yield an annual effective rate of
A 14-year 1,000 par value bond is redeemable at maturity for 1,100. It is bought at a price to yield an annual effective rate of 3.15%.
Determine the book value of the bond 9 years after issue if the amount for amortization of premium in the 5th coupon payment is 6.25.
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
8th Edition
1264098723, 978-1264098729
