on the price of a purchaser should be willing to pay for the given bond assume...
on the price of a purchaser should be willing to pay for the given bond assume that coupon interest is paid twice a year $20,000 bond with a coupon rate of 6% that matures a 9 years current interest rate is 3% the purchaser should be willing to pay?
Homework Answers
The mature rate will help you at the last of completing a bond upto then no use
The cupon rate enables a discount in payment
Given 6% twice a year
The amount to be paid = money*cupon rate/2
Divided by 2 is due to payment twice in a year
Amount = 20000*6%/2=600
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on the price of a purchaser should be willing to pay
for the given bond assume...
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