Consider a bond paying a coupon rate of 775 per year


Consider a bond paying a coupon rate of 7.75% per year semiannually when the market interest rate is only 3.1% per half-year. The bond has six years until maturity.

1) What is the bonds current price?
2) What is the price after 12 months?
3) What is the total rate of return on the bond?

 

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Finance Basics: Consider a bond paying a coupon rate of 775 per year
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