



Case 1  YTM = 8%
Annual Coupon rate = 7%
Semi Annual Coupon Rate = 3.5%
Semi Annual Coupon Payment = 35
Number of Years = 15
Number of Semi Annual Periods = 15 * 2 = 30
FV = 1,000
YTM = 8%
Semi Annual YTM = 4%
Using Financial Calculator:
PV = 813.35
Case 2  YTM = 10%
Annual Coupon rate = 7%
Semi Annual Coupon Rate = 3.5%
Semi Annual Coupon Payment = 35
Number of Years = 15
Number of Semi Annual Periods = 15 * 2 = 30
FV = 1,000
YTM = 10%
Semi Annual YTM = 5%
Using Financial Calculator:
PV = 672.52
Case 3  YTM = 12%
Annual Coupon rate = 7%
Semi Annual Coupon Rate = 3.5%
Semi Annual Coupon Payment = 35
Number of Years = 15
Number of Semi Annual Periods = 15 * 2 = 30
FV = 1,000
YTM = 12%
Semi Annual YTM = 6%
Using Financial Calculator:
PV = 565.05
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