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A four-year bond has a coupon rate of 5% and pays its coupons annually. It has a face value of 200. The yield to maturity
- A four-year bond has a coupon rate of 5% and pays its coupons annually. It has a face value of 200. The yield to maturity is 4% per year.
- Calculate the annual discount factors (do not use continuous compounding or semi-annual compounding)
- Calculate the coupon payments and final payment.
- Calculate the price of the bond.
- Calculate the duration of the bond.
- Calculate the convexity of the bond.
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
