Question
A bond is issued at a price of $120 and pays a interest of $5 per year for the next 5 years. If the interest
A bond is issued at a price of $120 and pays a interest of $5 per year for the next 5 years. If the interest rate in the market is 5.5% and the bond is redeemed for a price of $100 then what is the price of the bond today?
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The Concepts And Practice Of Mathematical Finance
Authors: Mark S. Joshi
2nd Edition
0521514088, 9780521514088
