Consider a bond paying a coupon rate of 11.00% per year semiannually when the market interest rate is only 4.4% per half-year. The bond has six years until maturity. Required: a. Find the bond's price today and six months from now after the next coupon is paid. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Current price Price after six months b. What is the total rate of return on the bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Total rate of return % per six months
Consider a bond paying a coupon rate of 11.00% per year semiannually when the market interest rate is only 4.4% per half-year. The bond has six years until maturity. Required: a. Find the bond's price today and six months from now after the next coupon is paid. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Current price Price after six months b. What is the total rate of return on the bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Total rate of return % per six months
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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