Question
A 6-year bond, semi-annual coupon sells at par ($1000). Another bond of equal risk, maturity, and par value pays a 8% annual coupon. What is
A 6-year bond, semi-annual coupon sells at par ($1000). Another bond of equal risk, maturity, and par value pays a 8% annual coupon. What is the price of the annual coupon bond?
a. $992.64
b. $980.43
c. $900.00
d. $850.00
PLEASE SHOW YOUR WORK
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Advanced Financial Risk Management Enterprise Wide Risk Management In Theory And Practice
Authors: Donald Van Deventer, Kenji Imai, Mark Mesler
3rd Edition
1547416157, 9781547416158
