Calculation Of Semi-Annually Compounded Government Bond

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Question

A $1000, 8.5% coupon, 2 year Government of Canada bond was issued on June 1, 1986.   At what price died it sell on April 27, 1990 if the markets required return was 11.2% compounded semi-annually?

 

Summary

The question belongs to Accounting and it discusses about calculation of semi-annually compounded Government bond.

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