you have just purchase a outstanding non-callable 15 year bond with a par value of 1000. assume that this bond pays interest of 7.5% with a semiannual compounding. if the going nominal annual rate is 6% what price did you pay for this bond? how does the price compare to the price of the annual coupon bond?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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you have just purchase a outstanding non-callable 15 year bond with a par value of 1000. assume that this bond pays interest of 7.5% with a semiannual compounding. if the going nominal annual rate is 6% what price did you pay for this bond? how does the price compare to the price of the annual coupon bond?

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