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frozen [14]
3 years ago
5

Consider a bond (with par value = $1,000) paying a coupon rate of 9% per year semiannually when the market interest rate is only

6% per half-year. The bond has three years until maturity. Find the bond's price today and 6 months from now after the next coupon is paid. ?
Business
1 answer:
dybincka [34]3 years ago
5 0

Answer:

The bond price is $ 926.24  today

The bond price in six months is $ 936.81

Explanation:

Find detailed calculation in the attached spreadsheet.

Download xlsx
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