Homework Answers
where r is the rate of required Return for a compounding period i.e. 5.10% /2 = 2.55% _ _ (Semi-annual)
n is the no compounding periods i.e. 15 years * 2 = 30 periods _ _ (Semi-annual)
Coupon 7.25% /2 = 3.625% _ _ (Semi-annual)
= 753.689472078 + 469.81844033
= $ 1223.51
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