A bond has $ 52000 face value and the coupon rate of the bond is 3.1 % (APR). The YTM of the bond is 4.3 %. What is the fair price of the bond assuming that the maturity of the bond is 3 years and the bond pays coupon in every 4 months? (Give the answer in round numbers without presenting a $ sign.) Arswer:

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
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A bond has $ 52000 face value and the coupon rate of the bond is 3.1 % (APR). The YTM of the bond is 43 %. What is the fair price of the bond assuming
that the maturity of the bond is 3 years and the bond pays coupon in every 4 months?
(Give the answer in round numbers without presenting as sign.)
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Transcribed Image Text:A bond has $ 52000 face value and the coupon rate of the bond is 3.1 % (APR). The YTM of the bond is 43 %. What is the fair price of the bond assuming that the maturity of the bond is 3 years and the bond pays coupon in every 4 months? (Give the answer in round numbers without presenting as sign.) Answer
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