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What's the Market Rate of a 10-year bond issued with a 9% Coupon? The bond is presently valued at $1,181.74. The bond's par value is
What's the Market Rate of a 10-year bond issued with a 9% Coupon? The bond is presently valued at $1,181.74. The bond's par value is $1,000. Coupon payments are made semi-annually.
| Par | 1000 | |
| Coupon rate | 9% | |
| Bond Term | 10 | |
| Coupon PAYMENT | 45 | |
| market rate premium | ? | |
| Present Value | 1181.74 | |
| PV | ($1,181.74) | |
| rate | 3.25% | 6.5000% |
| n | 20 | |
| PMT | 45 | |
| FV | 1000 |
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The New Finance Overreaction Complexity And Their Consequences
Authors: Robert A. Haugen
4th International Edition
0132775875, 9780132775878
