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Consider a bond paying a coupon rate of 775% per year semiannually when the market interest rate is only 31% per half year The bond has six years until maturity a Find the bond's price today and

Consider a bond paying a coupon rate of 7.75% per year semiannually when the market interest rate is only 3.1% per half-year. The bond has six years until maturity.

a. Find the bond's price today and six months from now after the next coupon is paid. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Current price $

Price after six months $

b. What is the total rate of return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) T

otal rate of return % per six months

 

Apr 11 2020 Read more Less More

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