Question
The yield to maturity of a $1,000 bond with a 7.2% coupon rate, semiannual coupons, and two years to maturity is 8.8% APR, compounded semiannually.
The yield to maturity of a
$1,000
bond with a
7.2%
coupon rate, semiannual coupons, and two years to maturity is
8.8%
APR, compounded semiannually. What is its price?
The price of the bond is
$______
(Round to the nearest cent.)
Also please explain how you got the CPN
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
