Question

Par Value 1,000 Settlement date 1/1/2000 Maturity date 1/1/2015 Annual coupon rate   8.00% Coupons per year...

Par Value 1,000
Settlement date 1/1/2000
Maturity date 1/1/2015
Annual coupon rate   8.00%
Coupons per year 2
Yield to maturity 9%

Homework Answers

Answer #1
                  K = Nx2
Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k]     +   Par value/(1 + YTM/2)^Nx2
                   k=1
                  K =15x2
Bond Price =∑ [(8*1000/200)/(1 + 9/200)^k]     +   1000/(1 + 9/200)^15x2
                   k=1
Bond Price = 918.56
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