Question
At time t = 0 (Now), in the bond market you observe a regular coupon bond with following characteristics: Face value: $1,000; Maturity: 5 years;
At time t = 0 (Now), in the bond market you observe a regular coupon bond with following characteristics: Face value: $1,000; Maturity: 5 years; Coupon rate: 9% and coupons are paid annually. The market interest rate/your required rate of return/yield to maturity is 8% per annum continuously compounded.
What is the bond price at time t=0 (Now)?
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Cash Confident An Entrepreneurs Guide To Creating A Profitable Business
Authors: Melissa Houston
1st Edition
1637586361, 978-1637586365
