Question
Consider a bond (with par value = $1,000) paying a coupon rate of 8% per year semiannually when the market interest rate is only 5%
| Consider a bond (with par value = $1,000) paying a coupon rate of 8% per year semiannually when the market interest rate is only 5% per half-year. The bond has 3 years until maturity.
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| a. | 1. Find the bond's price today and 6 months from now after the next coupon is paid.A. Current price? B. Price after 6 monthes? 2.What is the total (6-month) rate of return on the bond? |
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Statistical Reasoning For Everyday Life
Authors: Jeff Bennett, William Briggs, Mario Triola
5th Edition
9780134494043
