Question
Assume coupons paid semi-annually, coupon rates and yields quoted with semi-annual compounding, and redeemable at par unless otherwise noted. A municipality issues a $100 par
Assume coupons paid semi-annually, coupon rates and yields quoted with semi-annual compounding, and redeemable at par unless otherwise noted.
A municipality issues a $100 par value bond paying a 5% coupon with 10-year maturity. The bond is callable in 8 years (after the 16th coupon payment) at par. If the yield rate is 3%, how much should investors pay for the bond?
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Finance Of International Trade
Authors: Eric Bishop
1st Edition
0750659084, 978-0750659086
