Question
You bought a bond 8 years ago for $10,000. It has an $11,500 face value and a nominal annual bond rate of 8%, paid semiannually
You bought a bond 8 years ago for $10,000. It has an $11,500 face value and a nominal annual bond rate of 8%, paid semiannually (so it pays 4% of the face value every 6 months). You'd like to sell it now and get a nominal annual yield of 10%. How much should you sell the bond for?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
9th Edition
0321598903, 978-0321598905
