Question
Consider the following bonds with annual coupons, compounding annually, knowing that the current market rate for all new bonds (irrespective of time-to-maturity) is 3.8%. Bond
Consider the following bonds with annual coupons, compounding annually, knowing that the current market rate for all new bonds (irrespective of time-to-maturity) is 3.8%.
| Bond Name | Coupon Rate | Time to Maturity |
| A | 3.8% | 2 |
| B | 4.8% | 2 |
What is the price difference between bond A and bond B per 1,000 of par? (i.e. answer the result of taking the price of A minus the price of B).
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The Wealthtech Book The FinTech Handbook For Investors Entrepreneurs And Finance Visionaries
Authors: Susanne Chishti, Thomas Puschmann
1st Edition
1119362156, 978-1119362159
