Business, 07.11.2019 22:31 boxergirl2161

Suppose you purchased a corporate bond with a 10-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments. this means that you receive a $50 interest payment at the end of each six-month period for 10 years (20 times). then, when the bond matures, you will receive the principal amount (the face value) in a lump sum. three years after the bonds were purchased, the going rate of interest on new bonds fell to 6% (or 6% compounded semiannually). what is the current market value (p) of the bond (three years after its purchase)?

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Suppose you purchased a corporate bond with a 10-year maturity, a $1,000 par value, a 10% coupon rat...