Question
Bond A: 5-year maturity, semiannual coupons, $1,000 face value, sells at $1,150, and has a yield to maturity of 7.20%. Bond B: 7-year maturity, semiannual
Bond A: 5-year maturity, semiannual coupons, $1,000 face value, sells at $1,150, and has a yield to maturity of 7.20%. Bond B: 7-year maturity, semiannual coupons, $1,000 par value, the yield to maturity is 9.40%, and has the same coupon rate as that of Bond A. What is the price of Bond B?
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
