A 5-year Treasury bond with a par value of $1,000 has a 6% coupon rate and pays
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A 5-year Treasury bond with a par value of $1,000 has a 6% coupon rate and pays interest every year. The bond is three years old and has just made its third payment. The market now only requires a 5% return on the bond. What is the expected price of the bond?
Related Book For
Bank Management and Financial Services
ISBN: 978-0078034671
9th edition
Authors: Peter Rose, Sylvia Hudgins
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