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A bond was issued 3 years ago at a price of $966 with a maturity of 6 years, a yield-to-maturity (YTM) of 8.75% compounded semi-annually,
A bond was issued 3 years ago at a price of $966 with a maturity of 6 years, a yield-to-maturity (YTM) of 8.75% compounded semi-annually, and a face value of $1,000 with semi-annualy coupons. What is the price of this bond today immediately after the receipt of today's coupon if the YTM has fallen to 7.50% compounded semi-annually?
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Entrepreneurial Finance
Authors: Steven Rogers
4th Edition
1260461440, 978-1260461442
