Computation of value of bond and the coupon rate is 8 and, Ask an Expert

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Computation of Value of Bond

Consider a bond with face value of $1,000. the coupon payment is made semi-annually and the yield to maturity on the bond is 12% (effective annual yield). How much would you pay for the bond if :

a) The coupon rate is 8% and the time to maturity is 20 years?

b) The coupon rate is 10% and the time to maturity is 15 years?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9160553

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