17

Fixed Income: Value of Bond What is the value of the bond if interest is paid twice per year? Slides 25-6 will help. Assume: O . The bond was issued 100 years ago The bond has 2 years to maturity The yield to maturity is 4% The annual coupon rate is 8% The par value is $1,000 The bond pays interest twice per year (it is a semiannual pay bond) How to enter answer: Enter answer in two decimal points without commas and don't enter the dollar sign. That is, if the answer is $1,215.87, enter 1215.87