A 7% annual coupon, $1000 par value, six year bond yields 5%. If yields remain unchanged what should its price be in one year?
A 7% annual coupon, $1000 par value, six year bond yields 5%. If yields remain unchanged what should its price be in one year?
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Step: 1
A classic bond pricing problem Since the yields remain unchanged we can assume that the yield remain...
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Step: 2
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Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
