A bond has a coupon rate of 7.9% and pays coupons annually. The bond matures in 4 years and the yield to maturity on similar bonds is 6.7%. What is the price of the bond?
A bond has a coupon rate of 7.9% and pays coupons annually. The bond matures in 4 years and the yield to maturity on similar bonds is 6.7%. What is the price of the bond?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A bond has a coupon rate of 7.9% and pays coupons annually. The bond matures in 4 years and the yield to maturity on similar bonds is 6.7%. What is the price of the bond?
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