Question
A bond has a $10,000 face value, it matures in 20 years. The bond's semi-annual interest payments are shown below: Years Semi - Annual Interest
A bond has a $10,000 face value, it matures in 20 years. The bond's semi-annual interest payments are shown below:
Years Semi - Annual Interest Payments
First 6 years 0
Next 8 years $220
Last 6 years $280
The annual yield to maturity is 5.6%. What is the price of the bond today?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
