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You are considering a 6-year, $100,000 bond that pays a 5% coupon rate annually. If its current YTM is 4%, what is the price of
You are considering a 6-year, $100,000 bond that pays a 5% coupon rate annually. If its current YTM is 4%, what is the price of the bond?
A. $105,287
B. $105,243
C. $106,292
D. $105,817
You purchase a 5-year corporate bond which has a coupon rate of 6%, paid annually, and its par value is $1,000. The YTM is 4%. What is the price of the bond?
a. $1,359.30
b. $955.48
c. $1,224.58
d. $1,089.04
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How Finance Works
Authors: Mihir Desai
1st Edition
1633696707, 978-1633696709
