Question
1. Assume semi-annual payments. What is the coupon rate for A bond? (Note: Becuase you are given t do not multiply it by 2 and
1. Assume semi-annual payments. What is the coupon rate for A bond? (Note: Becuase you are given "t" do not multiply it by 2 and remember that price quotes are as a percentage of $1000. This means to get the price, move the decimal over 1 place. For example, a price quote of 99.99 is equal to a price of $999.9.)
Bond | Coupon Rate | Yield | Price Quote | t |
A |
| 2.42 | 99 | 4.338 |
2. Assume semi-annual payments. A bond has a coupon rate of 4.4% when yields are 3.29%. If the bond has 22 years to maturity, what is the price of the bond?
3. You are looking at a 26-year zero-coupon bond that has a yield to maturity of 3.3% . What is the value of the bond? Assume semi-annual compounding.
4. Assume semi-annual payments. What is the coupon rate for a 23-year bond with a yield of 3.089% and a price of $1,098.48?
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