Question
Bonds X and Y are identical, including the risk class. The only difference between A and B is in the coupon payment as shown below.
Bonds X and Y are identical, including the risk class. The only difference between A and B is in the coupon payment as shown below.
Bond X Bond Y
Face value $1,000 $1,000
Annual Coupon Payment $120 $130
Payment Frequency Semiannual Annual
Years to maturity 15 15
Price $934.71 ?
What is the price of bond Y?
A. $956.95
B. $973.44
C. $925.88
D. $1,007.15
E. $989.75
F. $940.92
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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
