You are considering a 5 - year, $ 1 0 0 0 par value bond. Its coupon

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Question:

You are considering a

5 -

year, $

1000

par value bond. Its coupon rate is

4.6 %,

and is paid

12

times a year. If you require an \"effective\" annual interest rate

(

not a nominal rate

)

4.6 %,

how much are you willing to pay for the bond?

Posted Date: May 11, 2024 05:46 AM

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You are considering a 5 - year, $ 1 0 0 0 par value bond. Its coupon

Question:

Expert Answer:

To determine the bonds value we need to calculate its present valu... View the full answer

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