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A five year bond with continuous compounding yield of 8% pays an annual coupon of 5% with par of $100. What is the bond price?
A five year bond with continuous compounding yield of 8% pays an annual coupon of 5% with par of $100. What is the bond price? Is the bond trading at a premium or discount?
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| A) $76.93 |
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| B) $80.00 |
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| C) $86.82 |
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| D) $125.00 |
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Shape Up Your Finances
Authors: Ian Birt
2nd Edition
1925716422, 978-1925716429
