Question
A bond has a face value (and redemption value) of $504,000, and pays coupons annually. The effective annual yield is 4 times the coupon rate.
A bond has a face value (and redemption value) of $504,000, and pays coupons annually. The effective annual yield is 4 times the coupon rate. The present value of the redemption amount is 5 times the present value of the coupon stream. What is the price of the bond?
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
