Question
A $5,000 bond that pays monthly coupons at j 12 = 6% was purchased on June 15, 2020 at a price ( P ) to
A $5,000 bond that pays monthly coupons at j12 = 6% was purchased on June 15, 2020 at a price (P) to yield j2 = 4.85%. The bond is redeemable at par on December 15, 2025.
Calculate P, the bond purchase price. Answers rounded to the nearest dollar.
- A.
$5,277
- B.
$5,000
- C.
$5,286
- D.
$5,289
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The Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
13th Global Edition
1292409487, 978-1292409481
