Question
Suppose that you purchased a A rated $1000 annual coupon bond with an 10.8% coupon rate and a 6-year maturity. The current rate on 6-year
Suppose that you purchased a A rated $1000 annual coupon bond with an 10.8% coupon rate and a 6-year maturity. The current rate on 6-year US treasuries is 3%. If you purchased it at a 8.533% discount to par value, how much did you pay?
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
