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A bond has a 10-year maturity, a 5% coupon paid semiannually, and $1000 par value. The required rate of return (yield to maturity)on the bond
| A bond has a 10-year maturity, a 5% coupon paid semiannually, and $1000 par value. | ||||
| The required rate of return (yield to maturity)on the bond is 11%. | ||||
| Compute the price of the bond today using the mathematical formula | ||||
| (the formula has two main terms, the present value of coupons, and the present value of the par repayment) | ||||
| SHOW WORK HERE, HIGHLIGHT FINAL ANSWER IN YELLOW | ||||
| PV coupon payments | ||||
| PV par repayment | ||||
| PV bond | ||||
|
| ||||
l dont use excel equations use formulas
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Fundamentals Of Institutional Asset Management
Authors: Frank J Fabozzi, Francesco A Fabozzi
1st Edition
9811220034, 9789811220036
