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) A bond will mature in 15 years. It has a 4% coupon rate and will pay annual coupons. If the bond has a
) A bond will mature in 15 years. It has a 4% coupon rate and will pay annual coupons. If the bond has a face value of $1,000 and a 4.5% yield to maturity, what should be the price of the bond today? What if YTM goes up to 5%? What if YTM goes up to 5.5%? 2) What would be the price of the bond above in (1) if the coupons were paid semiannually?
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
132554909, 978-0132554909
