Question
Joann buys a ten-year 10,000 floating rate par value bond with annual coupons. She knows the coupons will be level at 6.5% for the first
Joann buys a ten-year 10,000 floating rate par value bond with annual coupons. She knows the coupons will be level at 6.5% for the first five years, and then increase by a factor of 1.04 every year.
Find the amount of principal in the fourth coupon.
DO NOT COPY AND PASTE and NO EXCEL OR GRAPHING CALCULATOR
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Financial Management Core Concepts
Authors: Ray Brooks, Raymond Brooks
1st Edition
0321155173, 9780321155177
