$100 par value debenture paying coupon of $10 per annum is redeemed at par in 3 years. The average annual discount rate is 6%. Coupons are paid semi annually, what is the price of this debt

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Price of debt

$100 par value debenture paying
coupon of $10
per annum
is
redeemed at par in 3 years. The
average annual discount rate is 6%.
Coupons are paid semi annually,
what is the price of this debt
Transcribed Image Text:$100 par value debenture paying coupon of $10 per annum is redeemed at par in 3 years. The average annual discount rate is 6%. Coupons are paid semi annually, what is the price of this debt
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