At what price is the yield of a 10-year, 10% bond equal to the yield of...

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At what price is the yield of a 10-year, 10% bond equal to the yield of a 5-year, 4% bond whose price is $110? The 10-year, 10% bond pays coupons once per year. The 5-year, 4% bond pays coupons every 6 months. Both bonds have a face value of $100. Please round your numerical answer to two decimal places. At what price is the yield of a 10-year, 10% bond equal to the yield of a 5-year, 4% bond whose price is $110? The 10-year, 10% bond pays coupons once per year. The 5-year, 4% bond pays coupons every 6 months. Both bonds have a face value of $100. Please round your numerical answer to two decimal places.

Answer rating: 100% (QA)

To find the price at which the yield of a 10year 10 bond is equal to the yield of a 5year 4 bond pri... View the full answer