Question
You are interested in purchasing a bond that has a face value of $1,000. The bond will mature in 10 years and has a coupon
You are interested in purchasing a bond that has a face value of $1,000. The bond will mature in 10 years and has a coupon rate of 2.0% per year, paid semi-annually. Calculate the current price of the bond, assuming that the yield to maturity is 2.50% per year compounded semi-annually. Show your calculation.
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
