Question
Suppose a seven-year, $1,000 bond with a 5.45% coupon rate and semiannual coupons is trading with a yield to maturity of 3.58%. If the yield
Suppose a seven-year, $1,000 bond with a 5.45% coupon rate and semiannual coupons is trading with a yield to maturity of 3.58%.
If the yield to maturity of the bond rises to 4.55% (APR with semiannual compounding), at what price will the bond trade?
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
