finance questions
Question # 00791884
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Updated on: 01/29/2021 02:26 PM Due on: 01/29/2021
Abc Corporation is issuing a 10 year bond with a face value of $20000 today. The bond makes no coupon payments during the first two years. Over the subsequent three years, coupon payments (3.0% coupon rate per year)will be made semi-annually at the end of each period. During the last five years, coupon payments (2.5% coupon rate per year) will be made semi-annually at the end of each period. The yield to maturity is 2.75% per year compounded semi annual. Calculate the current price of the bond.
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