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A bond has a face value of $1,000 and 15 years until maturity. The bond has a 4% APR coupon with semi-annual coupon payments.
A bond has a face value of $1,000 and 15 years until maturity. The bond has a 4% APR coupon with semi-annual coupon payments. Currently, investors seek a 7% APR yield to maturity to hold the bond. What is the current trading price of the bond?
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In this case the bond has the following characteristics Face value 1000 Coupon rate 4 APR semiannual ...
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
