Question
Assume semi-annual payments. A bond has a coupon rate of 2.8% when yields are 3.17%. If the bond has 23 years to maturity, what is
Assume semi-annual payments. A bond has a coupon rate of 2.8% when yields are 3.17%. If the bond has 23 years to maturity, what is the price of the bond?
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SOLUTION To calculate the price of the bond we need to discount the semiannual coupon payments and the final repayment of the face value par value usi...Get Instant Access to Expert-Tailored Solutions
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Fundamentals of Corporate Finance
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
12th edition
007353062X, 73530628, 1260153592, 1260153590, 978-1260153590
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