Question
A bond has a face value of $1,000 and a contractual interest rate of 6%. The bond has semiannual interest payments. The market interest rate
A bond has a face value of $1,000 and a contractual interest rate of 6%. The bond has semiannual interest payments. The market interest rate is 4%. The bond matures in 5 years and will pay $1,000. What is the bond's current market price?
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
16th edition
1337902608, 978-1337902601
