Below is the following information relating to the bond issued by Legal and General Finance Plc from London Stock Exchange.

1. Express the market price of the bond along with other relevant information that you recorded above in terms of the relevant polynomial equation.

2. Calculate the market value of the bond using the above information and assuming the yield to maturity (YTM) of 5%.
 

 

Face Value per Bond (par value) Closing Price of bond on 12/26/2021 Coupon Rate f Frequency of Coupon Payments Next Coupon Payment Date Maturity Date Current Date Days Remaining to Maturtity Years Remaining to Maturity Number of Cashflow per year Number of Casflows till Maturity Value of Semi-Annual Coupons Payable YTM Market Value of the Bond 1,000 138.30 5.875% 6 months 6/13/2022 12/11/2031 12/26/2021 3637 9.96 2 19.93 29.38 5% 755.39 Number of Coupon Payments Each Year 1 2 2 2 Total 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 2 2 2 2 2 2 21