question archive A 6-year bond, semi-annual coupon sells at par ($1000)
A 6-year bond, semi-annual coupon sells at par ($1000)
Subject:FinancePrice:2.86 Bought7
A 6-year bond, semi-annual coupon sells at par ($1000). Another bond of equal risk, maturity, and par value pays a 8% annual coupon. What is the price of the annual coupon bond?
a. $992.64
b. $980.43
c. $900.00
d. $850.00
