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You bought a $1000 corporate bond for $900 three years ago. It is paying $30 in interest at the end of every 6 months, and
You bought a $1000 corporate bond for $900 three years ago. It is paying $30 in interest at the end of every 6 months, and it matures in 4 more years. (a) Compute its coupon rate. (b) Compute its current value, assuming the market interest rate for such investments is 5%0 per year, compounded semiannually
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Innovation And Finance
Authors: Andreas Pyka, Hans-Peter Burghof
1st Edition
0415696852, 978-0415696852
