Question
Bond valuation Semiannual interest: Find the value of a bond maturing in 10 years, with a $1000 par value and a coupon interest rate of
Bond valuation Semiannual interest:
Find the value of a bond maturing in 10 years, with a $1000 par value and a coupon interest rate of 13% (6.5% paid semiannually) if the required return on similar-risk bonds is 13% annual interest (6.5% paid semiannually).
The present value of the bond is $ (Round to the nearest cent.)
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Handbook Of The Economics Of Finance Volume 2A
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
