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Consider a Treasury Bond with a $1000 face value, 15 years to maturity and an annual coupon of 6% (which means a 3% coupon payment
| Consider a Treasury Bond with a $1000 face value, 15 years to maturity | |||||||||
| and an annual coupon of 6% (which means a 3% coupon payment every six months the first coupon payment is six months from today). | |||||||||
| Suppose current market interest rates are 5% per year (2.5% per six months). | |||||||||
| Find the price of the bond. | |||||||||
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Corporate Financial Management
Authors: Glen Arnold
4th Edition
0273719068, 978-0273719069
