Question
(a) What is the price of a 5.000% semiannual coupon bond with yield to maturity of 4.800% and a tenor of 28 years. (b) What
(a) What is the price of a 5.000% semiannual coupon bond with yield to maturity of 4.800% and a tenor of 28 years.
(b) What is the price of a 5.000% semiannual coupon bond with yield to maturity of 4.800% and a tenor of 2 years.
(c) What is happening to the price of the bond as the tenor approaches zero (maturity)? What is this phenomenon called?
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Principles Of Macroeconomics
Authors: Frank, Bernanke, Antonovics, Heffetz
3rd Edition
1259117162, 9781259117169
