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To determine the present value of a bond that pays semiannual interest, which of the following adjustments should not be made to compute the price
To determine the present value of a bond that pays semiannual interest, which of the following adjustments should not be made to compute the price of the bond?
a. | The annualized coupon should be split in half. | |
b. | The annual discount rate should be divided by 2. | |
c. | The number of annual periods should be doubled. | |
d. | The par value should be split in half. | |
e. | All of the above adjustments have to be made. |
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