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Compute the price of a 6.9 percent coupon bond with 15 years left to maturity and a market interest rate of 8.0 percent. (Assume interest payments are semiannual.) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Is this a discount or premium bond? Bond price Is this a discount or premium bond?

Compute the price of a 6.9 percent coupon bond with 15 years left to maturity and a market interest rate of 8.0 percent. (Assume interest payments are semiannual.) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Is this a discount or premium bond? Bond price Is this a discount or premium bond?

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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Compute the price of a 6.9 percent coupon bond with 15 years left to maturity and a market interest rate of 8.0 percent. (Assume interest payments are semiannual.) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Is this a discount or premium bond? Bond price Is this a discount or premium bond?
Transcribed Image Text:Compute the price of a 6.9 percent coupon bond with 15 years left to maturity and a market interest rate of 8.0 percent. (Assume interest payments are semiannual.) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Is this a discount or premium bond? Bond price Is this a discount or premium bond?
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