Question

Assume semi-annual payments. What is the price for A bond? (Note: N is given, do not...

Assume semi-annual payments. What is the price for A bond? (Note: N is given, do not double it)

Bond   

Coupon Rate   

Yield

Price   

N   

A

4.7%

4.66%

4.338
Business   Finance   
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Homework Answers

Answer #1

Face Value of Bond = $1000

Semi-annual coupon payment = $1000*4.7%*1/2 = $23.50

Semi-annual Yield rate = 4.66%/2 = 2.33%

Calculating the Current Price of Bond using Excel "PV" function:-

So, the price for A bond is $1000.82

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