Question
A bond was issued three years ago at a price of $966 with a maturity of six years, a yield-to-maturity (YTM) of 8.75% compounded semi-annually,
A bond was issued three years ago at a price of $966 with a maturity of six 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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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
