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Unable to calculate the Current price and Price after twelve months. Can someone assist please. Consider a bond paying a coupon rate of 7.75% per
Unable to calculate the Current price and Price after twelve months. Can someone assist please.
Consider a bond paying a coupon rate of 7.75% per year semiannually when the market interest rate is only 3.1% per half-year. The bond has six years until maturity. a. Find the bond's price today and twelve months from now after the next coupon is paid. (Do not round intermediate calculations. Round your answers to 2 decimal places.) $ Current price Price after twelve months $ b. What is the total rate of return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3.15 % per six months Total rate of returnStep by Step Solution
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