Question
A $2,000,000 bond was issued on September 10 2015 with a 5 year maturity.Coupon rate is 4.5% and the YTM is 6.75% p.a. compounded half-yearly.
A $2,000,000 bond was issued on September 10 2015 with a 5 year maturity.Coupon rate is 4.5% and the YTM is 6.75% p.a. compounded half-yearly. Interest is paid semi annually.How much is the bond worth on 10 March 2018?
a.$1,799,116.64
b.$1,946,911.55
c.$1,898,050.68
d.$1,911,077.19
e.$2,105,287.68
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
