Compute the price of the bond


Problem:

In July 2010 you purchase a 10 year US Government bond. The bond has an annual coupon rate of 4.5%, paid semi-annually.

Required:

Question: If investors demand a 2.48% return on 6 month investments, what is the price of the bond?

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics: Compute the price of the bond
Reference No:- TGS0891389

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