Alan uses 19481 to purchase a 10-year par value bond. Coupons are paid out annually and each coupon is equal to 2% of the face
Alan uses 19481 to purchase a 10-year par value bond. Coupons are paid out annually and each coupon is equal to 2% of the face value of the bond. If each coupon payment is invested into an account that earns an effective annual interest rate of 2.4%, what is the face value of the bond if Alan realizes an overall yield of 3.36% per year effective over the 10 year period?
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Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
