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A five-year bond has a face value of $1,000. Its coupon rate is 5% p.a. and coupons are paid semi-annually. provide full formula like pv

A five-year bond has a face value of $1,000. Its coupon rate is 5% p.a. and coupons are paid semi-annually.

provide full formula like pv / pmt / fv .. don't use excel

  • If the market yield at issuance is 5%, without calculation identify the price of the bond would be. 5 Marks
  • If we hold the bond for 1.5 years and sell it at a yield of 4% p.a. What would the selling price be?
  • What would the holding period yield (HPY) on this investment be?

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