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A Bond of 50,000 was issued by the Central Bank on August 17, 2012, with a 30-year maturity. The coupon rate was 3.68% compounded semi-anually.
A Bond of 50,000 was issued by the Central Bank on August 17, 2012, with a 30-year maturity. The coupon rate was 3.68% compounded semi-anually. If you want to purchase this bond today:
- What cash price does it have, when prevailing market rates today are 5.17% compounded semi-anually?
- What is the amount of the bond premium or discount?
- What is the amount of the payment that you would receive every six months?
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