A $2,500 bond with a coupon rate of 5% paid semi-annually has five years to maturity and

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A $2,500 bond with a coupon rate of 5% paid semi-annually has five years to maturity and a yield to maturity of 8.7%. What is the price of this bond?

Question 20 options:

$9,771.01

$2,131.32

$7,440.94

$9,573.49

$10,915.94

Related Book For answer-question

Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

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Posted Date: May 11, 2024 06:54 AM

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A $2,500 bond with a coupon rate of 5% paid semi-annually has five years to maturity and

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Expert Answer:

To calculate the price of the bond we can use the present value formula for the bonds cash flows The ... View the full answer

Investments An Introduction

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