A twelve year 5,000 par valued floating rate bond with annual coupons has a price P such that the investors APY is 8%. The annual
A twelve year 5,000 par valued floating rate bond with annual coupons has a price P such that the investors APY is 8%. The annual coupon rate for the n-th year is given by the function .07+.0035*n (please no excel formulas)
a. Find the price P
b. Find the amount of Principal P6 in the sixth coupon payment
c. Find the interest I5 in the fifth coupon payment
d. Find the amount of the discount or premium for this bond.
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Authors: Giacomo Morri, Antonio Mazza
1st Edition
1118764404, 978-1118764404
