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Answer the following questions regarding bond valuation. What is the price of a $1,000 par value bond with a 6% coupon rate paid semiannually, if
- Answer the following questions regarding bond valuation.
- What is the price of a $1,000 par value bond with a 6% coupon rate paid semiannually, if the bond is priced to yield 4% and it has five years to maturity?
- Following a, what would be the price of the bond if the coupon is paid quarterly?
- Explain how the calculation changes, given semi-annual coupons in (a) versus quarterly coupons in (b).
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Finance For Managers
Authors: E. Martinez Abascal
1st Edition
0077140079, 9780077140076
