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The yield to maturity of a $1,000 bond with a 6.7% coupon​ rate, semiannual​ coupons, and...

The yield to maturity of a

$1,000

bond with a

6.7%

coupon​ rate, semiannual​ coupons, and two years to maturity is

8.2%

​APR, compounded semiannually. What is its​ price?

Solutions

Expert Solution

FV = 1,000

r = 6.7%/2 = 0.0335

n = 2 * 2 = 4 semi-annual payments

cpn = 1,000 * 0.082/2 = 41

jeff jeffy answered 2 years ago
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