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I POSTED THIS SAME QUESTION BEFORE AND THE ANSWER WAS INCORRECT! DO NOT COPY AND PASTE IT HERE! THANKS. Consider a bond paying a coupon
I POSTED THIS SAME QUESTION BEFORE AND THE ANSWER WAS INCORRECT! DO NOT COPY AND PASTE IT HERE! THANKS.
Consider a bond paying a coupon rate of 11.50% per year semiannually when the market interest rate is only 4.6% per half-year. The bond has four years until maturity.
a. Find the bond's price today and six months from now after the next coupon is paid. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
| Current price | $ |
| Price after six months | $ |
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