Question
On January 1, 2014, PJ buys a 1,000 par-value bond that pays annual coupons with the first coupon due on December 31, 2014. The redemption
On January 1, 2014, PJ buys a 1,000 par-value bond that pays annual coupons with the first coupon due on December 31, 2014. The redemption value of 1,000 is to be paid on December 31, 2043. PJ pays 1,000 for the bond. At issue, PJ calculates the duration of the bond to equal 22.13.
Calculate the amount of the coupon payment.
A. 19.00
B. 20.00
C. 21.50
D. 22.50
E. 25.00
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
