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Maturity on a comparable-risk bond

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Bond valuation

A bond that matures in 15 years has a $1000 par value. The annual coupon interest rate s 12 per cent and the maket's required yield to maturity on a comparable-risk bond is 14 per cent. What would be the value of this bond if it paid interest annually? Semiannually?

Reference no: EM131074037

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Maturity on a comparable-risk bond : A bond that matures in 15 years has a $1000 par value. The annual coupon interest rate s 12 per cent and the maket's required yield to maturity on a comparable-risk bond is 14 per cent. What would be the value of this bond if it paid interest annu..
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