Bonds with Semiannual Coupons
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A bond has a 25-year maturity, an 8% annual coupon paid semiannually, and a face value of $1,000. The going nominal annual interest rate (rd) is 6%. What is the bond's price?
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The file contains step by step solution for finding the price of such a bond in an attached Excel sheet.
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A bond has a 25-year maturity, an 8% annual coupon paid semiannually, and a face value of $1,000. The going nominal annual interest rate (rd) is 6%. What is the bond's price?
Coupons per year 2
Annual values Semiannual Inputs
Years to Maturity 25 50
Coupon rate 8% 4%
Annual ...
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