Question
You are considering investing in an 7% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following prices
You are considering investing in an 7% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following prices for discount, or zero-coupon, bonds with face values of $100:
| Maturity | Price |
| 1 | 95 |
| 2 | 84 |
| 3 | 82 |
What is the price of the bond today?
(please round your answer to the nearest penny)
With equation if possible, so it is easier to understand..
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Short Term Financial Management
Authors: Ned C Hill
1st Edition
0023548207, 978-0023548208
