Question
On 25 July 2015 a company issued a bond with a face value of $200,000 that matures exactly 25 years later. The coupon rate is
On 25 July 2015 a company issued a bond with a face value of $200,000 that matures exactly 25 years later. The coupon rate is 6% p.a. compounded half-yearly. What is the bond's value on 25 January 2019 assuming the market yield is 5% p.a. compounded half-yearly.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
