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Calculating Bond Issuance Prices Presented below are annual coupon rates, yield rates, and expected duration for a series of debentures. Calculate the issuance price for
Calculating Bond Issuance Prices
Presented below are annual coupon rates, yield rates, and expected duration for a series of debentures.
Calculate the issuance price for each debenture assuming that the face value of each bond is $1,000 and that interest is paid semiannually.
Bond | Coupon Rate | Yield Rate | Duration | |||
---|---|---|---|---|---|---|
A | 4.0 | % | 6.0 | % | 5 | years |
B | 12.0 | % | 10.0 | % | 6 | years |
C | 6.0 | % | 8.0 | % | 10 | years |
D | 0.0 | % | 6.0 | % | 15 | years |
E | 8.0 | % | 8.0 | % | 10 | years |
Do not round until your final answer. Round your answer to the nearest dollar.
A | Answer |
B | Answer |
C | Answer |
D | Answer |
E | Answer |
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