Calculate the price of a 4 year, $5000 bond, with a 5% coupon, when similar bonds...
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Calculate the price of a 4 year, $5000 bond, with a 5% coupon, when similar bonds are yielding 4.96%. Assume the bond is paying semi annual coupon payments. Round your answer 2 decimal places. Calculate the price of a 4 year, $5000 bond, with a 5% coupon, when similar bonds are yielding 4.96%. Assume the bond is paying semi annual coupon payments. Round your answer 2 decimal places.
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Answer rating: 100% (QA)
To calculate the price of a bond we need to use the present value formula which takes into account the bonds future cash flows coupon payments and fac... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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