Question
A $5000 bond bearing interest at 6.5% payable semi-annually matures in ten years.If it is bought to yield 5.8% compounded semi-annually, what is the purchase
A $5000 bond bearing interest at 6.5% payable semi-annually matures in ten years.If it is bought to yield 5.8% compounded semi-annually, what is the purchase price of the bond?
(remember, in the end what you want here is PV of the principal + PV of the principal coupons)
please give me explanation. thank you!!
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
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