A 10-year 1,000 par value bond has coupons at the rate of X%, payable semiannually. The bond is redeemed at par and priced to yield 8 per year compounded semi-annually. The price of the bond is 1,135.90. Determine X. Possible Answers A 3% B 5% с D E 6% 8% 10%
A 10-year 1,000 par value bond has coupons at the rate of X%, payable semiannually. The bond is redeemed at par and priced to yield 8 per year compounded semi-annually. The price of the bond is 1,135.90. Determine X. Possible Answers A 3% B 5% с D E 6% 8% 10%
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 8PROB
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