Determine the market price of a 12-year, 5.15%, $150,000 coupon bond when the market interest rate is 5.75%.
Note: you must use the pricing formula from class. Do not use 12 different terms.
Coupon payment = 0.0515 * 150000 = 7725
Price of bond = 7725 * (P/A, 5.75%,12) + 150000 * (P/F, 5.75%,12)
= 7725 * 8.499956 + 150000 * 0.511253
= 142350.04
Determine the market price of a 12-year, 5.15%, $150,000 coupon bond when the market interest rate...
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