Question
Bond A and bond B have the same maturity of 10 years and share identical risk features. Bond A has coupon rate of 5.7%, while
Bond A and bond B have the same maturity of 10 years and share identical risk features. Bond A has coupon rate of 5.7%, while bond Bs coupon rate is 6.7%. In each case the coupon is paid annually. If bond B is currently selling for $800, what should be bond As current price?
A. $864.78
B. $863.21
C. $862.20
D. $865.78
E. $740.81
F. $738.42
G. $737.41
H. $739.81
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International Finance A Survey
Authors: H. Kent Baker, Leigh A. Riddick
1st Edition
0199754659, 978-0199754656
