Question
A bond has a face value of $1,000, an annual coupon rate of 4.60%, a yield to maturity of 8.1%, makes 2 (semiannual) coupon payments
A bond has a face value of $1,000, an annual coupon rate of 4.60%, a yield to maturity of 8.1%, makes 2 (semiannual) coupon payments per year, and 10 periods to maturity (or 5 years to maturity). Determine the price of this bond based on the Annual Percentage Rate (APR) convention and the price of this bond based on the Effective Annual Rate (EAR) convention.
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Multinational Finance
Authors: Kirt C. Butler
4th Edition
1405181184, 978-1405181181
