A $1,000 face value bond currently has a yield to maturity of 11.62% the bond matures in 16 years and pays interest semi - annually the coupon rate is 9.75 percent what is the current price of this bond ?
Added by Juan Manuel A.
Step 1
First, we need to calculate the number of semi-annual periods in 16 years. Since there are two semi-annual periods in a year, there are 32 semi-annual periods in 16 years. Show more…
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