In October 2014 you purchase 100 euros of bonds in France which pay a 6% coupon every year. If the bond matures in 2017(3-year bond)
In October 2014 you purchase 100 euros of bonds in France which pay a 6% coupon every year. If the bond matures in 2017(3-year bond) and the YTM is 2%, what is the value of the bond? Write down whether it is premium bond or not and draw the graph that shows the path of the price of the bond with respect to years. What happens to price as as the maturity gets closer?
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Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
