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What is the price of a bond with the following information? It is 1.5 years until expiration. The coupon rate is 7 percent and coupon
What is the price of a bond with the following information? It is 1.5 years until expiration. The coupon rate is 7 percent and coupon payments are made once per year. The market rate of return is 5.6 percent. The bond has a face value of 2000 SEK Tips Draw a time axis so that you do not make any mistakes with the discounting. Don't look at the cash flows as an annuity, but as two separate cash flows. There is always a coupon payment when the bond matures, how long is it then until the next coupon payment? (Answers are rounded to integers) a) 2219 b) 2004 c) 265* d) 2108 e) 1979
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