Question
You have just purchased an outstanding non-callable, 15-year bond with a par value of $1,000. Assume that this bond pays interest of 7.5%, with semiannual
You have just purchased an outstanding non-callable, 15-year bond with a par value of $1,000. Assume that this bond pays interest of 7.5%, with semiannual compounding. If the going (nominal) annual rate is 6%, what price did you pay for this bond? How does the price compare to the price of the annual coupon bond?
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Personal Finance
Authors: E Thomas Garman, Raymond E Forgue
10th Edition
143903902X, 9781439039021
