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If I'm trying to answer Using semi-annual compounding, what is the price of a 5% coupon bond with 10 years left to maturity and a market interest

If I'm trying to answer


Using semi-annual compounding, what is the price of a 5% coupon bond with 10 years left to maturity and a market interest rate of 7.2%? Assume that interest payments are paid semi-annually and that par value is $1,000.


Is this the right formula?

Bond Price.png

Bond Price.png

Top Answer

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