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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.
bound | coupon rate | yield rate | duration |
a | 6% | 6% | 10 years |
b | 9% | 8% | 15 years |
c | 0% | 6% | 8 years |
d | 4% | 8% | 5 years |
e | 5% | 10% | 6 years |
Do not round until your final answer. Round your answer to the nearest dollar. Please answer it!
A | $ |
B | $ |
C | $ |
D | $ |
E | $ |
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