Question
INTERMEDIATE FINANCE 360: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Suppose a seven-year, $1000 bond with 7.5% coupon rate and semiannual coupons is trading with a yield to maturity of 6.41%.
INTERMEDIATE FINANCE 360:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Suppose a seven-year, $1000 bond with 7.5% coupon rate and semiannual coupons is trading with a yield to maturity of 6.41%. If the yield to maturity of the bond rises to 7.02% (APR with semiannual compounding), what price will the bond trade for?
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International Finance Theory And Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J Melitz,
11th Edition
013451954X, 9780134519548
