Question
suppose aseven-year, $1,000 bond with a 4.86% coupon rate and semiannual coupons is trading with a yield to maturity of 3.32%. If the yield to
suppose aseven-year, $1,000 bond with a 4.86% coupon rate and semiannual coupons is trading with a yield to maturity of 3.32%.
If the yield to maturity of the bond rises to 3.65% (APR with semiannualcompounding), at what price will the bondtrade?
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Business Mathematics
Authors: Charles MillerStanley SalzmanStanley SalzmanGary Clendenen
11th Edition
0321500121, 9780321500120
