Question
A bond has a face value (and redemption value) of $504,000, and pays coupons annually. The effective annual yield is 3 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 3 times the coupon rate. The present value of the redemption amount is 2 times the present value of the coupon stream. What is the price of the bond?
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
