Question
Bond A and B both pay annual coupons, mature in nine years, have a face value of thousand dollar, pay their next couponin 12 months,
Bond A and B both pay annual coupons, mature in nine years, have a face value of thousand dollar, pay their next couponin 12 months, and have the same yield to maturity. Bond a has a coupon rate of 6.5 percent and is priced at $1055.13. bond B has a coupon rate of 7.4 percent. what is the price of bond B?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
6th Edition
0077211332, 9780077211332
