Assume the government issues a semi- annual bond that matures in 5 years with a face value of $1,000 a coupon yield of 10 percent.What would be the price if the yield to maturity (semi-annual compounding) on similar government bonds were 8%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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Assume the government issues a semi- annual bond that matures in 5 years with a face value of $1,000 a coupon yield of 10 percent.What would be the price if the yield to maturity (semi-annual compounding) on similar government bonds were 8%?
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