Thai Savings Bank issues bonds as an initiative to increase domestic saving. The bonds have a face value of $40,000 each, a bond rate of 6% per year (nominal) payable semi-annually, and a maturity date of 10 years. What is the current price of this bond, if the market interest rate is 8% per year, compounded semi-annually?

Thai Savings Bank issues bonds as an initiative to increase domestic saving. The bonds have a face value of $40,000 each, a bond rate of 6% per year (nominal) payable semi-annually, and a maturity date of 10 years. What is the current price of this bond, if the market interest rate is 8% per year, compounded semi-annually?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 11P

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