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Consider a bond paying a coupon rate of 12.00% per year semiannually when the market interest rate is only 4.8% per half-year. The bond has
Consider a bond paying a coupon rate of 12.00% per year semiannually when the market interest rate is only 4.8% per half-year. The bond has five years until maturity. |
a. | Find the bond's price today and ten months from now after the next coupon is paid. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
Current price | $ |
Price after ten months | $ |
b. | What is the total rate of return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Total rate of return | % per six months |
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