Question
The price of a 1000 10-year bond with semiannual coupons is 900, which is bought to yield a nominal rate of 10% convertible semiannually. If
The price of a 1000 10-year bond with semiannual coupons is 900, which is bought to yield a nominal rate of 10% convertible semiannually. If the redemption value is 1065.33, find the coupon rate and modified coupon rate per coupon period. (Answer: 4%, 3.7547%) Show all work and equations.
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Finance Capital A Study In The Latest Phase Of Capitalist Development
Authors: Rudolph Hilferding
1st Edition
0415436648, 978-0415436649
