Consider a bond with face value F= 100 dollars maturing in five years, T= 5 with coupons

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Consider a bond with face value F= 100 dollars maturing in five years, T= 5 with coupons of C= 10 dollars paid annually, the last one at maturity.

This means a stream of payments of 10,10,10,10,110 dollars at the end of each consecutive year. Given the continuous compounding rater, say 12%.

Find the price of the bond?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Jun 17, 2023 03:37 AM

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Consider a bond with face value F= 100 dollars maturing in five years, T= 5 with coupons

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Given Face value F 100 Time to maturity T 5 years Coupon payment C 10 Discount rate r ... View the full answer

Foundations of Financial Management

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