In Calculating the Current Price of a Bond Paying Semiannual

question 60

Multiple Choice

In calculating the current price of a bond paying semiannual coupons, one needs to

• A) use double the number of years for the number of payments.
• B) use half the annual coupon.
• C) use half the annual rate as the discount rate.
• D) All of the above need to be done.

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