A 5-year bond with a yield of 6% (continuously compounded), with a face value of $100, pays an 3% coupon at the end of each year. What is the bond’s price?

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: The Basic Tools Of Finance
Section9.1: Present Value: Measuring The Time Value Of Money
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A 5-year bond with a yield of 6% (continuously compounded), with a face value of $100, pays an 3% coupon at the end of each year.

What is the bond’s price

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