Question
Calculate the price of a bond that matures in 8 years, has a face value of $5.000, a coupon rate of 2% (paid semiannually) if
Calculate the price of a bond that matures in 8 years, has a face value of $5.000, a coupon rate of 2% (paid semiannually) if the market interest rate is 1%. What is the price of the bond if the market interest rate drops to 0.5%?
| A. | $5,383.50 | |
| B. | $5,587.44 | |
| C. | $5,387.44 | |
| D. | $5,583.50 |
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
