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(6 pts) A F = $1000 face (par) value bond is redeemable at par with n= 4 coupon payments. This bond also has periodic coupon
(6 pts) A F = $1000 face (par) value bond is redeemable at par with n= 4 coupon payments. This bond also has periodic coupon rate r = 5.2% = 0.052, has periodic yield rate = 6.73% = 0.0673. Its values at time t, where t = 0,1,2,3,4 are: Po = $947.86, P1 = $959.65, P2 = $972.23, Pz = $985.67, and P4 = $1000. Use the semi-theoretical method to approximate the book value (or clean price) P2.25 = P2+0.25 (so k = 0.25). Show the formula and how the numbers go in the formula
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