The cash flows to the bond will be interest semiannually of $ 10000 * 3.375% *0.5 = $168.8 and the pricipal payment after 10 years of $10000
b)
The annual required return on the bond is the yield to maturity . here the price of the bond is same as the par value ie the coupon rate is same as the ytm.
Annual required return on the bond = 3.375%
c) Price of the zero coupon bond = face value / ( 1 +r)^n
= 10000 / 1.03375 ^10
= $7,175.38
d)
Price of the bond = par value / ( 1 +ytm/2)^n*2 + coupon [ 1 - 1/ ( 1+ ytm/2)^n*2 ] / ytm /2
= 10000 / 1.019375^20 + 168.8 [ 1 - 1 / 1.019375 ^20 ] / 0.019375
= 6812.72 + 168.8 *16.4505
= 6812.72 + 2776.84
= $9,589.56
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