Question
Bond with a par value of $1,000, a coupon of 4.3% paid semi-annually with seven years to maturity FV = 1000 n = 7*2 =
Bond with a par value of $1,000, a coupon of 4.3% paid semi-annually with seven years to maturity
FV = 1000
n = 7*2 = 14
C = 4.3% * (1/2) * 1000 = $21.5
YTM 4.88%,
what is the price of the bond?
Step by Step Solution
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To calculate the price of the bond you can use the formula for the present value of a bond ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
