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Consider a bond that matures in 3 years. The face value of this bond is $ 1 0 0 0 . The bond pays semi
Consider a bond that matures in years. The face value of this bond is $ The bond pays semiannual coupons at a rate of
a Calculate the price of this bond, assuming the yield to maturity is
b Suppose you hold this bond for two years and then sell it just after receiving a coupon payment. At the time of the sale, the yield to maturity has fallen to Calculate the price of the bond at the time of the sale.
c What is your total dollar value and percent return over the holding period?
show me all the calculations in excel as well as the formulas
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