Question
A government bond with a face value of $1,000 was issued eight years ago and there are twelve years remaining until maturity.The bond pays semi-annual
A government bond with a face value of $1,000 was issued eight years ago and there are twelve years remaining until maturity.The bond pays semi-annual coupon payments of $45, the coupon rate is 9% pa paid twice yearly and rates in the marketplace are 9.6% pa compounded semi-annually.What is the value of the bond today?
a. $645.59
b. $980.45
c. $967.02
d. $957.79
e.$1,000.00
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
