Semiannual interest payments


Problem:

You own a bond with 20 years to go until it maturity and makes semiannual interest payments of $40.00. If recent IPO's feature bonds with a 10% coupon rate what should your bond be worth today? Explain in detail.

A. 825.53

B. 828.41

C. 1,563.80

D. 6745.78

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Finance Basics: Semiannual interest payments
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