Question
Doisneau 23-year bonds have an annual coupon interest of 14percent, make interest payments on a semiannual basis, and have a $1,000 par value. If the
Doisneau 23-year bonds have an annual coupon interest of 14percent, make interest payments on a semiannual basis, and have a $1,000
par value. If the bonds are trading with a market's required yield to maturity of 11 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds?
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
