Question
You bought a $1000 corporate bond for $910 three years ago. It is paying $25 in interest at the end of every 6 months, and
You bought a $1000 corporate bond for $910 three years ago. It is paying $25 in interest at the end of every 6 months, and it matures in 6 more years.
(a) Compute its coupon rate.
(b) Compute its current value, assuming the market interest rate for such investments is 4% per year, compounded semiannually.
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Fundamentals Of Cost Accounting
Authors: Michael W Maher, William N. Lanen, Madhav V. Rajan
1st Edition
0073018376, 978-0073018379
