Consider a bond paying a coupon rate of 9% per year semi-annually when the market interest rate is only 5% per half-year. The bond has
Consider a bond paying a coupon rate of 9% per year semi-annually when the market interest rate is only 5% per half-year. The bond has three years until maturity.
a. Find the bonds 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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Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
