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A 5.50% Treasury Bond (face value $100,000) matures August 15, 2040. Step-by-step find the price of this bond on March 1, 2020 when the discount
A 5.50% Treasury Bond (face value $100,000) matures August 15, 2040. Step-by-step find the price of this bond on March 1, 2020 when the discount rate is 8.00% (semi-annually compounded). Part 1: Compute the price components as of the most recent ex-coupon date: Number of remaining coupon payments: Present Value of the coupon payments: $ Present Value of the principal re-payment: $ Bond price: $ Part 2: How many days have passed since the most recent ex-coupon date? How many days in total between the previous and the next ex-coupon date? Bond price on March 1, 2020: $ A 5.50% Treasury Bond (face value $100,000) matures August 15, 2040. Step-by-step find the price of this bond on March 1, 2020 when the discount rate is 8.00% (semi-annually compounded). Part 1: Compute the price components as of the most recent ex-coupon date: Number of remaining coupon payments: Present Value of the coupon payments: $ Present Value of the principal re-payment: $ Bond price: $ Part 2: How many days have passed since the most recent ex-coupon date? How many days in total between the previous and the next ex-coupon date? Bond price on March 1, 2020: $
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