You bought a 1000 corporate bond for 900 three years ago it, Ask an Expert

Economics

You bought a $1000 corporate bond for $900 three years ago. It is paying $30 in interest at the end of every 6 months, and it matures in 4 more years.

(a) Compute its coupon rate.

(b) Compute its current value, assuming the market interest rate for such investments is 5% per year, compounded semiannually. Contributed by D. P. Loucks,

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92635482

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