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Question

Find the price a purchaser should be willing to pay for the given bond. Assume that the coupon interest is paid twice a year.

$10,000 bond with coupon rate 5.4% that matures in 12 years; current interest rate is 6.5%.

Solution

VerifiedAnswered 2 years ago

Answered 2 years ago

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1 of 6**Given:** $\$10,000$ bond with coupon rate $5.4$% that matures in $12$ years; current interest rate is $6.5\%$.
**To Find:** the price a purchaser should be willing to pay for the given
bond. Assume that the coupon interest is paid twice a year.

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