Question
1. Assume a par value of $1,000. Caspian Sea plans to issue a 8.00 year, semi-annual pay bond that has a coupon rate of 8.07%.
1. Assume a par value of $1,000. Caspian Sea plans to issue a 8.00 year, semi-annual pay bond that has a coupon rate of 8.07%. If the yield to maturity for the bond is 7.64%, what will the price of the bond be?
2.Assume a par value of $1,000. Caspian Sea plans to issue a 15.56 year, semi-annual pay bond that has a coupon rate of 7.88%. If the yield to maturity for the bond is 8.24%, what will the price of the bond be?
Step by Step Solution
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Step: 1
To calculate the price of a bond you can use the present value formula for bonds which is the presen...
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Fixed Income Analysis
Authors: Barbara S. Petitt
5th Edition
1119850541, 978-1119850540
