Question
Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and semiannual coupons is trading with a yield to maturity of 6.61%. a.) is this
Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and semiannual coupons is trading with a yield to maturity of 6.61%.
a.) is this bond currently trading at a discount, a par, or at a premium? Explain.
b.)if the yield to maturity of the bond rises to 7.32% (APR with semiannual compounding), what price will the bond trade for?
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Guardians Of Finance
Authors: James R. Barth, Gerard Caprio, Ross Levine
1st Edition
0262526840, 978-0262526845
