Vadel45781 Vadel45781
  • 25-01-2024
  • Mathematics
contestada

Assume that a corporate bond has a par value of $1,000 and 8 years until it matures. This bond also has an annual coupon rate of 7.5% but pays interest every 6 months. If investors require an annual rate of return of Cost % (compound semi-annually) then what should be the current price for this bond?

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