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On 18 April 2015 a company issued a bond with a face value of $250,000 that matures exactly 20 years later. The coupon rate is
On 18 April 2015 a company issued a bond with a face value of $250,000 that matures exactly 20 years later. The coupon rate is 4% p.a. compounded half-yearly. What is the bond's value on 18 October 2018 assuming the market yield is 5% p.a. compounded half-yearly? a. $222,688.53 b. $218,621.53 c. $222,135.15 d. $221,595.27 e. $209,993.63
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