ABC has issued a bond with the following characteristics: Par: $1,000; Time to maturity: 16 years; Coupon
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ABC has issued a bond with the following characteristics: Par: $1,000; Time to maturity: 16 years; Coupon rate: 5%; Assume annual coupon payments. Calculate the price of this bond if the YTM is 5.96%.
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
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Corporate Finance
ISBN: 978-0071339575
7th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro
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