Question
What is the price of a 25-year sovereign bond with a 4.5 per cent yield with annual coupons of 3.5 per cent and a 1,000
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What is the price of a 25-year sovereign bond with a 4.5 per cent yield with annual coupons of 3.5 per cent and a 1,000 face value? How do you define a sovereign bond? Take the above bond in and determine what would be the price of this bond if it paid no coupons? How would you define this type of bond? What would be the benefits for a corporation to issue a bond with no coupons?
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Contemporary Issues In Finance
Authors: Simon Grima, Frank Bezzina, Inna Romanova
1st Edition
1786359073, 978-1786359070
