A 15-year corporate bond pays $45 interest every six months. What is the bond's price if...

Question

Question

A 15-year corporate bond pays $45 interest every six months. What is the bond's price if the bond's promised YTM is 5.5 percent?

business finance

Answer 1

Answer #1

Lets say the face value is $1000 Coupon payment is $45 (semi-annual) Number of periods = 15*2 = 30 Periodic YTM = 5.5%/2 We u

Answer 2

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