I am wondering how is the bond price been calculated since there is no where indicate this bond bought in one year time, or sth like this. But the answer indicated there are two payments left. May I also get the corresponding calculations for the whole chart ! thanks

c. Assume that you bought the coupon bond above. A day after you bought the bond the yield increased by 100 basis points. Show your exact gains/losses if i. Your investment horizon is three and a half years ii. Your investment horizon is four years ro.com iii. Your investment horizon is four and a half years The future value of your wealth is the sum from the sale of the bond and the reinvestment in coupons. The table below summarizes the wealth for the different horizons and the two yields. es e Horizon = 3.5 Horizon = 4.0 Horizon = 4.5 years years years i = 7.6% i = 8.6% i=7.6% i= 8.6% i = 7.6% i= 8.6% Sell of bond 117.494a 116.0077 121.8773 120.8932 110.8643 110.3527 Future value first coupon 18.0145 b 18.4360 18.6865 19.2124 19.3836 20.0215 Future value second coupon 16.7421 c 16.9760 17.3667 17.6909 18.0145 18.4360 Future value third coupon 15.5596 d 15.6317 16.14 16.29 16.7421 16.9760 Future value fourth coupon 15.5596 15.6317 Total 167.8104 167.0514 174.0705 174.0804 180.5640 181.4178 a - three and a half years from issuance there are two payments left. In half a year the penultimate coupon in a year and a half the par and last coupon: 15 1.0760.5 . + 115 1.0761.5 5 = 117. 494 b - the first coupon (received after one year) is invested for two and a half years so: 15 x 1. 07625 = 18. 0145