Question
A 5-year $10,000 debenture issued by Braxton Corporation is trading in the market at a yield of 4% p.a. with semi-annual compounding. The instrument pays
A 5-year $10,000 debenture issued by Braxton Corporation is trading in the market at a yield of 4% p.a. with semi-annual compounding. The instrument pays a semi-annual coupon of 6% per year. What is its current price in the market?
Group of answer choices
$10,898
$11,231
$10,890
$13,593
None of the other answers is correct
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Cambridge IGCSE And O Level Accounting Coursebook
Authors: Catherine Coucom
2nd Edition
1316502775, 978-1316502778
