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An investor purchased a 25-year bond with semiannual coupons, redeemable at par, for a price of 10,000. The annual effective yield rate is 7.05%, and
An investor purchased a 25-year bond with semiannual coupons, redeemable at par, for a price of 10,000. The annual effective yield rate is 7.05%, and the annual coupon rate is 7%. Calculate the redemption value of the bond. A) 9,918 B) 9,942 C) 9,981 D) 10,059 E) 10,083 Step by Step Solution
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Handbook Of The Economics Of Finance
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
044459406X, 978-0444594068
