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 $904.55 ?
What is the price of bond Y? A. $956.95
B. $989.75
C. $925.88
D. $940.92
E. $1,007.15
F. $973.44
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Real Estate Finance
Authors: John P. Wiedemer, Keith J. Baker
9th edition
324181426, 324181425, 978-0324181425
