Question
In February 2015, Treasury offered a semiannually compounded 4.8% 25-year bond with yield to maturity of 2.60% (annual rate). The par value is $1,000. Recognizing
In February 2015, Treasury offered a semiannually compounded 4.8% 25-year bond with yield to maturity of 2.60% (annual rate). The par value is $1,000. Recognizing that coupons are paid semiannually,
a) Calculate the bond's price as of February 2015.
b) Calculate the bond's price as of February 2020 (everything else stays the same)
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Glencoe Business And Personal Finance
Authors: McGraw-Hill
1st Edition
0021400202, 9780021400201
