Question
A. A 7.0% annual coupon bond (par value equals $1,000) has 13 years to maturity. The current market interest rate on those bonds is 4.5%.
A. A 7.0% annual coupon bond (par value equals $1,000) has 13 years to maturity. The current market interest rate on those bonds is 4.5%. What is the current price for the bond? (PV Function in excel)
B. What should be the price of a bond paying 4.5% interest semiannually with 9 years to maturity when the market interest rate is 2.5%?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
