Kim Sundaram recently bought a 20-year zero coupon bond that compounds interest semiannually. If the current market
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Kim Sundaram recently bought a 20-year zero coupon bond that compounds interest semiannually. If the current market rate is 7.75 percent, what is the maximum price he should have paid for this bond?
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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Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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