Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods...

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Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods double

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Answer 1

Answer #1

Value of note is calculated as:-

=PV(rate,nper,pmt,fv)

=PV(7.7%/2,2*2,6%/2*1000000,1000000)

=969036.51

assuming that interest rate remains constant, price is expected to increase.

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Answer 2

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Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual...

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Add Answer to: Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods...

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Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods...