A bond will mature for 10,000 on March 1, 2028. It pays semi-annual coupons at an 8% (annual) rate. On November 12, 2013, the bond is trading at a price such that its yield to maturity is 7.2% (convertible semi-annually). What is the bond's market price as of November 12, 2013? (Use "actual" day's 365-days/year, and use "simple interest to calculate accrued interest)
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The face value of the bond is $10,000, so the semi-annual coupon payment is: $10,000 x 4% = $400 Show more…
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