Question
A $5000 bond with semi-annual coupons at j 2 = 9% is redeemable at par on November 1, 2034. (a) Determine the price on November
A $5000 bond with semi-annual coupons at j2 = 9% is redeemable at par on November 1, 2034. (a) Determine the price on November 1, 2014 to yield j4 = 10%. (b) Determine the book value of the bond on May 1, 2017 (just after the coupon is cashed). (c) What should the market quotation of this bond be on August 17, 2017, if the buyer wants a yield of j1 = 7%?
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A Study In Public Finance
Authors: A. C. Pigou
1st Edition
1443722766, 978-1443722766
