Question
A 2000 par value 20-year bond with annual coupons is bought to yield an annual effective yield rate of 5%. The bond is redeemed at
A 2000 par value 20-year bond with annual coupons is bought to yield an annual effective yield rate of 5%. The bond is redeemed at par. The amount for amortization of premium in the 15th coupon is 30. (i) Find the annual effective coupon rate of the bond. (ii) Find the book value immediately after the payment of the 10th coupon.
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
