Question
Can you please help me solve this problem? A bond has an annual coupon rate of 7%, paid semiannually. It matures in eight years. If
Can you please help me solve this problem?
A bond has an annual coupon rate of 7%, paid semiannually. It matures in eight years. If the market yield for similar bonds is 9%, then the price of the bond per $100 of face value would be closest to:
a)88.77
b)102.00
c)95.44
d)103.78
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
