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 $1000 $1000
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.$925.88
B.$1,007.15
C.$989.75
D.$956.95
E.$973.44
F.$940.92
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Analysis for Financial Management
Authors: Robert c. Higgins
8th edition
73041807, 73041803, 978-0073041803
