You bought a 12-year, 08.50% semi-annual coupon bond today and the current market rate of return...
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You bought a 12-year, 08.50% semi-annual coupon bond today and the current market rate of return is 08.00%. The bond is callable in 3 years with a $81 call premium. What price did you pay for your bond? (2 points) You bought a 12-year, 08.50% semi-annual coupon bond today and the current market rate of return is 08.00%. The bond is callable in 3 years with a $81 call premium. What price did you pay for your bond? (2 points)
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To determine the price of the bond we need to calculate the present value of all the future cash flows associated with the bond First we need to deter... View the full answer
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