Question
Calculate the purchase price of the following bonds. Indicate whether the bonds are priced at a discount, at par or at a premium. Give your
Calculate the purchase price of the following bonds. Indicate whether the bonds are priced at a discount, at par or at a premium. Give your answers in dollars and cents to the nearest cent.
Face ValueCoupon RateYears to MaturityMarket Ratea)$100r = 8.75%7j2= 8.75%b)$10,000r = 6.25%11j2= 4.5%c)$1,000r = 11.75%20j2= 13.5%
Quoted coupon rates and market rates are nominal annual rates compounded semi-annually.
a)Price =$
This bond is priced at:
a discount
par
a premium
b)Price =$
This bond is priced at:
a discount
par
a premium
c)Price =$
This bond is priced at:
a discount
par
a premium
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