Question
A bond with 10 years to maturity and a coupon rate of 8% has a par, or face, value of $21,000. Interest is paid annually.
A bond with 10 years to maturity and a coupon rate of 8% has a par, or face, value of $21,000. Interest is paid annually. If you require a return of 11% on this bond, what is the value of this bond to you?
The value of the bond is $
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Mathematical Control Theory And Finance
Authors: Andrey Sarychev, Albert Shiryaev, Manuel Guerra, Maria Do Rosário Grossinho
2008th Edition
3540695311, 978-3540695318
