Find todays price of the original bond with redemption


A semi-annual coupon bond with face value $100 and redemption amount $105 maturing in 10 years is purchased today to yield a nominal rate of i(2) = 10%. If the exact same bond was redeemable at par (i.e. at a redemption amount of $100), today’s purchase price to yield i(2) = 10% would be $113.07. Find today’s price of the original bond with redemption amount $105.

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Financial Management: Find todays price of the original bond with redemption
Reference No:- TGS02339160

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