Question
A semi-annual coupon bond has the following characteristics: Face value of bond: $1,000,000.00 Coupon rate: 6% per annum Years left to maturity: 9 years Yield
A semi-annual coupon bond has the following characteristics: Face value of bond: $1,000,000.00 Coupon rate: 6% per annum Years left to maturity: 9 years Yield rate: 5% per annum
A. Calculate the dollar value of the semiannual coupon?
B. Calculate the number of periods for calculation and yield rate per period?
C. Calculate the price of the coupon bond?
D. Calculate the price of the bond if the years to maturity falls to 8 with everything else remaining the same? What do you notice about the price?
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Essentials Of Financial Management Text And Cases
Authors: George C Philippatos
1st Edition
0816267162, 978-0816267163
