Question
You are holding a bond with an annual coupon rate of 6% that matures in 11 years. Interest is paid semiannually. Bonds recently issues of
You are holding a bond with an annual coupon rate of 6% that matures in 11 years. Interest is paid semiannually. Bonds recently issues of similar risk have a coupon rate of 5%. What should your bond sell for in the secondary market?
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Inside And Outside Liquidity
Authors: Bengt Holmstroem, Jean Tirole
1st Edition
0262518538, 9780262518536
