Question
Company ABD has a bond outstanding with a face value of $1000 that reaches maturity in 20 years. The bond certificate indicates that the stated
Company ABD has a bond outstanding with a face value of $1000 that reaches maturity in 20 years. The bond certificate indicates that the stated coupon rate for this bond is 6% and that the coupon payments are to be made semiannually.
Assuming the appropriate YTM on this bond is 5.0%, then the price at which this bond trades will be closest to:
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
