A $1,000 par value bond with 3 years to maturity and a 5% coupon has a yield

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A $1,000 par value bond with 3 years to maturity and a 5% coupon has a yield to maturity of 6%. Interest is paid semi-annually. Calculate the following:

(a) Price of the bond

(b) Calculate the Macaula 2 answers

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Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

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Posted Date: Jan 25, 2024 06:24 AM

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A $1,000 par value bond with 3 years to maturity and a 5% coupon has a yield

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a Price of the bond The price of the bond is calculated using the formula for the present value PV o... View the full answer

Practical financial management

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