Question
Calculate the price of a $1,000 bond, offering a 8% coupon payment with 20 years left to maturity and a market interest rate of 10%.
Calculate the price of a $1,000 bond, offering a 8% coupon payment with 20 years left to maturity and a market interest rate of 10%. (Assume interest payments are semiannual.) Is this a discount or premium bond?
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
