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Exercise 4
The KLM bond has a 8% coupon rate (with interest paid semi-annually), a maturity value of $1,000, and
matures in 5 years. If the bond is priced to yield 6%, what is the bond's current price?
(25 marks)
Fig: 1
The KLM bond has a 8% coupon rate (with interest paid semi-annually), a maturity value of $1,000, and
matures in 5 years. If the bond is priced to yield 6%, what is the bond's current price?
(25 marks)
Fig: 1
