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You own a bond with a face value of​ $10 000. The bond offers a coupon...

You own a bond with a face value of​ $10 000. The bond offers a coupon rate of​ 3%, payable​ semi-annually, and the bond matures in exactly 12 years.​ Today, the yield on​ 12-year bonds is​ 4% compounded​ semi-annually. What would your bond be worth now on the secondary​ market? (Round to the nearest​ dollar).

A. ​$10,545

B. ​$11,002

C. ​$15,008

D. ​$9,054

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Answer #1

solution : Given, face value (FV) = $10,000 = 1.5% Coupon rate 3% Semi Annual Coupon payment = 10,000x316 PMT . 150 Yeild (ra

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