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A South African government bond that matures in 3 years has a face value of R1000, a 6% annual coupon rate and semi-annual coupon payments.
A South African government bond that matures in 3 years has a face value of R1000, a 6% annual coupon rate and semi-annual coupon payments. The effective semi-annual interest rate is 5%.
At what interest rate would the bond 'sell at par' (i.e. bond price equals its face value)?
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Financial Markets And Institutions
Authors: Stanley Eakins Frederic Mishkin
9th Global Edition
1292215003, 978-1292215006
