Question

Price the following:

12-year, $1000 par value, 6% semi-annual coupon bond whose current nominal yield-to-maturity (YTM) is 8%.

10-year, $1000 par value, 8% quarterly coupon bond whose current nominal YTM is 7%.

30-year, $1000 par value, zero-coupon bond whose current nominal YTM is 9.5%.

13-year, $1000 par value, 8% monthly coupon bond whose current nominal YTM is 10%.

5-year, $500 par value, 8% semi-annual coupon bond whose current nominal YTM is 8.25%

Answer #1

We can use PV() function to price these bonds

1,

2.

3.

future value = 1000

Time 30

Yield = 9.5%

Price = Face value / (1+yield)^time

Price = 1000 / (1.095)^30

**Price =65.70**

**4.**

**5.**

**LET ME KNOW IF YOU HAVE ANY DOUBTS**

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18. Compute the yield to maturity of a $2,500 par value bond
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$838.137
par
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The yield-to-maturity (YTM) on one-year bond with zero coupon
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The price of a ten-year semi-annual pay bond with a par value of
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