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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%.

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Answered 2 years ago
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Given: $10,000\$10,000 bond with coupon rate 5.45.4% that matures in 1212 years; current interest rate is 6.5%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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