Assume all bonds have a par value of $1000 and semi-annual coupon payments Calculate the price

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Assume all bonds have a par value of $1000 and semi-annual coupon payments

Calculate the price of a bond with a coupon rate of 5% (on a face value of $1000), a YTM of 4% and 10 years until maturity.

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Posted Date: Apr 19, 2024 08:58 AM

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Assume all bonds have a par value of $1000 and semi-annual coupon payments Calculate the price

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Expert Answer:

To calculate the price of a bond we can use the present value formula for the bonds cash flows which includes the coupon payments and the final princi... View the full answer

Fundamentals Of Corporate Finance

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