Question
Bond E has the following features: Face value = $1,000, Coupon Rate = 4%, Maturity = 5 years, Yearly coupons The market interest rate is
Bond E has the following features:
Face value = $1,000, Coupon Rate = 4%,
Maturity = 5 years, Yearly coupons
The market interest rate is 3.55%
If interest rate remains at 3.55% for the life of the bond (i.e., 3.55 years), what is the price of Bond E in year 4?
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Financial Markets And Institutions
Authors: Jeff Madura
6th Edition
0324162618, 978-0324162615
