Question
Calculate the price of a $1,000 bond, offering a 10% coupon payment with 20 years left to maturity and a market interest rate of 8%.
Calculate the price of a $1,000 bond, offering a 10% coupon payment with 20 years left to maturity and a market interest rate of 8%. (Assume interest payments are semiannual.) Is this a discount or premium bond?
Price: _______ Type_______
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Lessons In Corporate Finance
Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
