Help with bond pricing 1) Calculate the price of a $1,000 face value 10 yr, 4% coupon bond with annual payments if investments of similar
Help with bond pricing
1) Calculate the price of a $1,000 face value 10 yr, 4% coupon bond with annual payments if investments of similar quality are yielding 5.2%? Is this bond selling at a discount, premium, or par value?
2) Calculate the price of a $1,000 face value 10 yr, 4% coupon bond with semi-annual payments if investments of similar quality are yielding 5.2%. Is this bond selling at a discount, premium, or par value?
3) Do you notice a difference? Why?
4) Calculate the price of a $1,000 face value 12 yr, 6% coupon bond with semi-annual payments if investments of similar quality are yielding 5.2%. Is this bond selling at a discount, premium, or par value?
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Authors: Grable, John E., Chatterjee, Swarn
1st Edition
3110727498, 978-3110727494
