Question
A bond offers an annual coupon rate of 4% with interest paid semiannually. The bond matures in two years. At a market discount rate of
A bond offers an annual coupon rate of 4% with interest paid semiannually. The bond matures in two years. At a market discount rate of 6% what is the price of this bond per 100 of par value?
For the question above at what annual discount rate would the price for the bond come out to par value?
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Analysis For Financial Management
Authors: Robert C Higgins
8th International Edition
0071257063, 9780071257060
