Answer to Question #137349 in Finance for Thabiso

Question #137349
How does the equation for valuing a bond change if semiannual payments are made? Find the value of a 10-year, semiannual payment, 10 percent coupon bond if nominal rd =13
1
Expert's answer
2020-10-13T11:08:35-0400


When semi annual payments are made, n which is the number of periods to maturity is doubled while r which is the yield of the bond is halved





Therefore PV = $ 834.72


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