Question
Suppose a seven-year, $1,000 bond with a 11.97 % coupon rate and semiannual coupons is trading with a yield to maturity of 10.36%. a. Is
Suppose a seven-year, $1,000 bond with a 11.97 % coupon rate and semiannual coupons is trading with a yield to maturity of 10.36%. a. Is this bond currently trading at a discount, at par, or at a premuim? Explain. b. If the yield to maturity of the bond rises to 11.14% (APR with semiannual compounding), at what price will the bond trade?
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Local Public Finance
Authors: René Geissler, Gerhard Hammerschmid, Christian Raffer
1st Edition
3030674681, 978-3030674687
