Question
The face value of this bond is $1,000, and there are three years left until maturity. A. Calculate the price of the bond today. B.
The face value of this bond is $1,000, and there are three years left until maturity.
A. Calculate the price of the bond today.
B. If the market interest rate remains at 8% after the next six months of interest payment, calculate the bond price at this time?
C. What is the total return on investment when the bond is purchased today and sold again six months later?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
