You bought a 12year bond with $100 face value at a price of $109.5 with a...
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You bought a 12year bond with $100 face value at a price of $109.5 with a coupon rate of 7.00% paid semiannually. After 4 years, (8 full years left in maturity) you decide to sell it and you find that the new yield to maturity is 8.00% APR. Based on this information, what is the selling price of this bond? You bought a 12year bond with $100 face value at a price of $109.5 with a coupon rate of 7.00% paid semiannually. After 4 years, (8 full years left in maturity) you decide to sell it and you find that the new yield to maturity is 8.00% APR. Based on this information, what is the selling price of this bond?
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To calculate the selling price of the bond we need to determine the cash flows from the bond discoun... View the full answer
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 9780324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
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