A. At 1000 par calculate the price of a 10 year semiannual coupon bond with a 4% coupon and an interest rate of 6%. B. Calculate the price of a 10 year semiannual zero coupon bond with an interest rate of 6%.

A. At 1000 par calculate the price of a 10 year semiannual coupon bond with a 4% coupon and an interest rate of 6%. B. Calculate the price of a 10 year semiannual zero coupon bond with an interest rate of 6%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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A. At 1000 par calculate the price of a 10 year semiannual coupon bond with a 4% coupon and an interest rate of 6%.

B. Calculate the price of a 10 year semiannual zero coupon bond with an interest rate of 6%.

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