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a) Find the value of a $1,000 par, 10-year maturity, 12% semi-annual coupon bond with a discount rate of 10%.

a) Find the value of a $1,000 par, 10-year maturity, 12% semi-annual coupon bond with a discount rate of 10%.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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a) Find the value of a $1,000 par, 10-year maturity, 12% semi-annual coupon bond with a discount rate of 10%. b) A bond is currently selling at a price of $1,000. It has a $900 par value, 10 year remaining maturity, with a 16% annual coupon. Find its yield to maturity (YTM). [Use only the YTM approximation formula. No need of trial-and-error process]
Transcribed Image Text:a) Find the value of a $1,000 par, 10-year maturity, 12% semi-annual coupon bond with a discount rate of 10%. b) A bond is currently selling at a price of $1,000. It has a $900 par value, 10 year remaining maturity, with a 16% annual coupon. Find its yield to maturity (YTM). [Use only the YTM approximation formula. No need of trial-and-error process]
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