Question
Consider a bond paying a coupon rate of 8.75% per year semiannually when the market interest rate is only 3.5% per half-year. The bond has
Consider a bond paying a coupon rate of 8.75% per year semiannually when the market interest rate is only 3.5% per half-year. The bond has three years until maturity.
a. Find the bond's price today and six months from now after the next coupon is paid.
b. What is the total rate of return on the bond?
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Private Capital Investing The Handbook Of Private Debt And Private Equity
Authors: Roberto Ippolito
1st Edition
1119526167, 978-1119526162
