Question
Consider a $1000 bond with a coupon rate of 10% and annual coupons. The par value is $1,000, and the bond has 5 years to
Consider a $1000 bond with a coupon rate of 10% and annual coupons. The
par value is $1,000, and the bond has 5 years to maturity. The yield to maturity is9%.
A.What is the present value of coupons?
B.What is the present value of face value (i.e. par value)?
C.What is the value of the bond?
D.Is it a premium or discount bond?
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Recent Advances In Computational Finance
Authors: Nikolaos S. Thomaidis, Jr. Dash, Gordon H.
1st Edition
1626181233, 978-1626181236
