a) Please calculate the value of a 5-year bond with an interest rate of 5% and a nominal value of PLN 2,500, which pays interest
a) Please calculate the value of a 5-year bond with an interest rate of 5% and a nominal value of PLN 2,500, which pays interest every six months, and we value it for two years and four months after the issue. The income rate of this bond is equivalent to the income rate of a 5-year zero coupon bond with a nominal value of PLN 10,000 sold at a discount of PLN 1780.73. (5 points) b) Please provide a clean price, a dirty price and an accrued interest. (2 points) c) Please specify if the (coupon) bond is sold at a premium or at a discount. (1 points) d) Please explain if and when the zero coupon bond can be sold at a premium? (2 points)
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Authors: CFP Board
2nd Edition
1119094968, 978-1119094968
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