Use the following spot rates or discount factors to calculate the price ( to the nearest cent
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Question:
Use the following spot rates or discount factors to calculate the price (to the nearest cent) of a 1.5 year, $1,000 face value, 6% coupon, semi-annual pay bond.
Maturity (years) Yield (annual) Discount Factor
0.5 2.0% 0.990099
1.0 2.6% 0.974498
1.5 3.0% 0.956317
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
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