Question: What is the difference in the values of a zero coupon bond that has 11 years to maturity and a 6% APR coupon bond that
What is the difference in the values of a zero coupon bond that has 11 years to maturity and a 6% APR coupon bond that has 8 years to maturity? Use $1000 par, 5% YTM and semiannual analysis for both. Your answer in dollars to two decimals without the $ sign.
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To calculate the difference in the values of the two bonds we can use the present value formula for ... View full answer
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