If the appropriate yield for this bond is 12 pa compounding


A company intends to raise funds by selling bonds. The face value is $100,000, interest is paid semi-annually in arrears(i.e. at the end of each period, just like all the bond examples in lectures) at a coupon rate of 8% p.a., and the maturity is 5 years. If the appropriate yield for this bond is 12% p.a. compounding semi-annually, how much can the company raise?

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Basic Statistics: If the appropriate yield for this bond is 12 pa compounding
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