Question
Kim Shaw is considering the purchase of a 5 year bond that pays a coupon rate of 5.25 % over the life of the bond
Kim Shaw is considering the purchase of a 5 year bond that pays a coupon rate of 5.25% over the life of the bond (annual payments) and a face value of $1000 that is returned at the bond's maturity. Using a yield to maturity of 8.50%, calculate to the nearest penny the value of the bond today.
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
