Question
A bond that matures in 15 years has a $1,000 par value. The annual coupon interest rate is 15% and the market's required yield to
A bond that matures in 15 years has a $1,000 par value. The annual coupon interest rate is 15% and the market's required yield to maturity on a comparable-risk bond is 16%.
A.) What would be the value of this bond if it paid interest annually? _____
B.) What would be the value of this bond if it paid interest semiannually? _____
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
8th Edition
0077261453, 978-0077261450
