Question
A UK government bond has exactly 10 years to maturity, has a par value of 100 and pays coupons at the rate of 15%. If
A UK government bond has exactly 10 years to maturity, has a par value of 100 and pays coupons at the rate of 15%. If the appropriate discount rate is 7%, what is a fair price to pay today for the bond?A.
157.67
B.
155.16
C.
156.85
D.
154.63
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Contemporary Economics An Applications Approach
Authors: Robert Carbaugh
8th Edition
1138652199, 978-1138652194
