An existing Treasury bond has been issued with a face value of $1,000,000. The bond pays half-yearly
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"An existing Treasury bond has been issued with a face value of $1,000,000. The bond pays half-yearly coupons of 10% per annum, and matures on 15 October 2020. Assume that the bond is sold on 15 May 2016. Current yields for similar Treasury bonds are 12% per annum. Assume the numer of days between 15 April and 15 October for any given year is 183 days. Calculate the price of the bond in the secondary market."
A) "$940,928.30 "
B) "$931,983.08 "
C) "$1,081,358.48 "
D) "$1,071,078.22 "
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ISBN: 9781292257891
7th Global Edition
Authors: Sunil Chopra
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