Question

. Calculate the price of a 4% coupon bond (annual coupons), $100 face value, 3 year...

. Calculate the price of a 4% coupon bond (annual coupons), $100 face value, 3 year bond if the appropriate discount rate is 10% each year.

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Answer #1

Solution :

The price of a 4% coupon bond (annual coupons), $100 face value, 3 year bond if the appropriate discount rate is 10% each year = $ 85.08

Thus the solution is = $ 85.08

Please find the attached screenshot of the excel sheet containing the detailed calculation for the above solution.

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