The bonds annual coupon rate was thus set at 7 with 8 years, Financial Management

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The bonds annual coupon rate was thus set at 7 with 8 years

Suppose a semiannual bond was issued several years ago, when the interest rate was 7 %.

The bond's annual coupon rate was thus set at 7%. With 8 years left in bond's life, the interest rate is 6% per year till the end of maturity.

What is the price of the bond 8 years prior to expiration. What will be the bond's price seven years prior to maturity?

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Financial Management: The bonds annual coupon rate was thus set at 7 with 8 years

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Financial Management: The bonds annual coupon rate was thus set at 7 with 8 years

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