A 10-year 100 par value bond pays 7% coupons semi-annually. The bond is priced to yield an annual nominal yield rate of 6%. Calculate the market price in 4.3 years. 104.40 104.76 104.86 None of the other answers 104.66
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The bond pays 7% coupons semi-annually, so the coupon payment is: Coupon payment = 100 par value x 7% coupon rate / 2 = $3.50 Show more…
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