Question
Suppose that a 12-year bond with a face value of 3000 dollars is redeemable at par and pays semiannual coupons that increase by 1 percent
Suppose that a 12-year bond with a face value of 3000 dollars is redeemable at par and pays semiannual coupons that increase by 1 percent per coupon. If the last coupon is for 75 dollars and the yield rate is 7.2 percent convertible semiannually, what is the book value of the bond immediately after the 14th coupon is paid?
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Financial Management Principles And Applications
Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.
10th Edition
0131450654, 9780131450653
