Question
Here is an excerpt from a bond table in the Globe and Mail, dated June 1, 2020: Maturity Date Coupon Rate Bid Price Ask Price
Here is an excerpt from a bond table in the Globe and Mail, dated June 1, 2020:
| Maturity Date | Coupon Rate | Bid Price | Ask Price | Bid Yield | Ask yield |
| 2025-06-01 | 9 | 163.14 | 163.24 | 3.54 | 3.53 |
In reference to the Government of Canada bond maturing on June 1, 2025 (above), answer the following question:
What is the present value of the bond if you bought it June 1, 2020 and kept it until it matured on June 1, 2025? The expected interest rate is 3.8%.
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Matlab An Introduction with Applications
Authors: Amos Gilat
5th edition
1118629868, 978-1118801802, 1118801806, 978-1118629864
