Question
can you please help me understand this question? A 15-year, $1,000 par bond with a 6.5% semi-annual coupon currently trades at a price of $1,215.
can you please help me understand this question?
A 15-year, $1,000 par bond with a 6.5% semi-annual coupon currently trades at a price of $1,215. If the yield to maturity of the bond remains constant, what will be its price in seven years?
- A.$1,072.02
- B.$858.37
- C.$1,132.28
- D.$1,275.53
- E.$1,118.21
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Public Finance and Public Policy
Authors: Jonathan Gruber
4th edition
1429278455, 978-1429278454
