Question: Valuing Bonds, Micro hard has issued a bond with the following characteristics PAR .......... $1,000 Time to Maturity .... 30 years Coupon rate .....7 percent

Valuing Bonds, Micro hard has issued a bond with the following characteristics

PAR .......... $1,000

Time to Maturity .... 30 years

Coupon rate .....7 percent

Semiannual payments

Calculate the price of this bond if the YTM is:

a. 7 percent

b. 9 percent

c. 5 percent

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a Settlement 1112 Think of Settlement as the beginning of the duration of the bond Maturity 1142 Think of Maturity as the end of the duration of the b... View full answer

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