Question
A bond with6years to maturity and sells at par pays coupons semi-annually at a rate of8.6percent. Another bond of equal risk and maturity pays coupons
A bond with6years to maturity and sells at par pays coupons semi-annually at a rate of8.6percent. Another bond of equal risk and maturity pays coupons annually at a rate of8.6percent. Both bonds have face values of $1,000.
What is the price of the bond that pays annual coupons?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
