8 year bond pays interest every 6 months and has a maturity value of $ 1

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Question:

8

year bond pays interest every

6

months and has a maturity value of $

1, 000 .

The current price of this bond is $

1, 014.04

and investors require a YTM of

9

percent

(

nomin

-'

rate with semi

-

annual compounding

) .

What is the annual coupon rate on this bond?

Related Book For answer-question

Personal Finance Turning Money into Wealth

ISBN: 978-0134730363

8th edition

Authors: Arthur J. Keown

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Posted Date: Feb 23, 2024 10:04 PM

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8 year bond pays interest every 6 months and has a maturity value of $ 1

Question:

Expert Answer:

To calculate the annual coupon rate on the bond we can use the formula for the bonds price given the ... View the full answer

Personal Finance Turning Money into Wealth

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