Question
2) Gardeenlya bonds mature in 8 years, have a par value of RM1,000, and make an annual coupon interest payment of RM65. The market requires
2) Gardeenlya bonds mature in 8 years, have a par value of RM1,000, and make an annual coupon interest payment of RM65. The market requires an interest rate of 8.2% on these bonds.
What is the bond's price today?
The bond's price is RM[ ]
What is the bond's price if the bonds will mature in 3 years time?
The bond's price is RM[ ]
As the bond moves further to its maturity, the value will become [ ] the par value.
(Also round your answer to 2 decimal points.)
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Derivatives Markets
Authors: Robert McDonald
3rd Edition
978-9332536746, 9789332536746
