Question
Consider a bond (with par value = $1,000) paying a coupon rate of 7% per year semiannually when the market interest rate is 7% per
Consider a bond (with par value = $1,000) paying a coupon rate of 7% per year semiannually when the market interest rate is 7% 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 (6-month) rate of return on the bond?
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Public Finance In Canada
Authors: Harvey S. Rosen, Wen, Snoddon
4th Canadian Edition
0070071837, 978-0070071834
