Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question 3
A bond has a face value or par value of $1000 and will mature at par in 10 years. The coupon rate is 10% compounded semi-annually. The yield
rate is 8% compounded semi-annually. Find the excess of the semi-annual coupon payment over the required semi-annual yield.
O a $10
Ob
$100
Ос
$20
Od
$80
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Transcribed Image Text:Question 3 A bond has a face value or par value of $1000 and will mature at par in 10 years. The coupon rate is 10% compounded semi-annually. The yield rate is 8% compounded semi-annually. Find the excess of the semi-annual coupon payment over the required semi-annual yield. O a $10 Ob $100 Ос $20 Od $80
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