Question
1. A 3-year bond with 10% coupon rate and $1000 face value yields 8% APR. Assuming annual coupon payments, calculate the price of the
1. A 3-year bond with 10% coupon rate and $1000 face value yields 8% APR. Assuming annual coupon payments, calculate the price of the bond. 2. A 5-year treasury bond with a coupon rate of 8% has a face value of $1000. What is the semi-annual interest payment? 3. A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi- annual coupon interest payments.
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
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