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1. Give bond of 2 years to maturity with an annual coupon of 2% paid semi-annually and annual yield of 1% what will be its
1. Give bond of 2 years to maturity with an annual coupon of 2% paid semi-annually and annual yield of 1% what will be its price. 2. use the formula : yc(11/(1+y)n)+(1+y)n)1=0.0050.01(1(1+0.005)41)+(1+0.005)41=1.019 3. Set up a cash flow table showing the cash flow and their present value. Does it sum to the price? 4. - see the attached spreadsheet in the solution folder
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