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Hello. I need the formulas and what the values represent for this multipart question (I can't find it anywhere). Assuming semi-annual compounding, what is the
Hello. I need the formulas and what the values represent for this multipart question (I can't find it anywhere).
- Assuming semi-annual compounding, what is the price of a zero coupon bond that matures in 3 years if the market interest rate is 5.5 percent? Assume par value is $1000.
- Using semi-annual compounding, what is the price of a 5 percent coupon bond with 10 years left to maturity and a market interest rate of 7.2 percent? Assume that interest payments are paid semi-annually and that par value is $1000.
- Using semi-annual compounding, what is the yield to maturity on a 4.65 percent coupon bond with 18 years left to maturity that is offered for sale at $1,025.95? Assume par value is $1000.
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