You are considering buying a coupon bond that pays annual coupons with the following characteristics. The...
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You are considering buying a coupon bond that pays annual coupons with the following characteristics. The bond has a face value of F = $100, has a coupon rate of 10%, and matures in 2 years. Your broker tells you that the yield-to-maturity of this bond is 5.6%. What is the price of the bond? You are considering buying a coupon bond that pays annual coupons with the following characteristics. The bond has a face value of F = $100, has a coupon rate of 10%, and matures in 2 years. Your broker tells you that the yield-to-maturity of this bond is 5.6%. What is the price of the bond?
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Answer rating: 100% (QA)
Method 1 To calculate the price of the bond we need to discount the cash flows generated by the bond ... View the full answer
Related Book For
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman
Posted Date:
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