Question
3- . Bond X is an 8% semi-annual coupon bond with a par value of $1000 and a maturity of 10 years. The bond has
3- . Bond X is an 8% semi-annual coupon bond with a par value of $1000 and a maturity of 10 years. The bond has a YTM of 7%. What is the value of the bond?
4. Bond J is a 10% semi-annual coupon bond with a par value of $1000 and a maturity of 2 years. If the assumed spot rates for a two year period are as follows, what is the value of the bond?
| Maturity (in years) | Spot rates |
| 0.5 | 3.79% |
| 1.0 | 3.93% |
| 1.5 | 4.12% |
| 2.0 | 4.34% |
5. If a zero coupon bond is currently trading at $75.46 and has a par value of $100 and a maturity of 4 years, what is its yield to maturity?
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The Evolution Of Finance
Authors: Barbara Guth
1st Edition
1633377261, 978-1633377264
