Assume that a corporate bond has a par value of $1000 and 15 years until it matures. Assume investors require annual effective rate of return of 6.09% that coupon interest is paid semi annually and current price of bond is $1,245.01. What’s the annual coupon rate on this bond?
Assume that a corporate bond has a par value of $1000 and 15 years until it matures. Assume investors require annual effective rate of return of 6.09% that coupon interest is paid semi annually and current price of bond is $1,245.01. What’s the annual coupon rate on this bond?
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 16P
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Assume that a corporate bond has a par value of $1000 and 15 years until it matures. Assume investors require annual effective rate of return of 6.09% that coupon interest is paid semi annually and current price of bond is $1,245.01. What’s the annual coupon rate on this bond?
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