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I need a mathematic way to solve this without excel. thanks 4.1.9 The National Post , a Canadian daily newspaper, has listings after each trading
I need a mathematic way to solve this without excel. thanks
4.1.9 The National Post , a Canadian daily newspaper, has listings after each trading day of the closing prices and yields of a number of bonds that traded the previous day. In the March 2, 2004 edition, there was the following listing for a Government of Canada bond: Coupon 4.25 Maturity Date Sep 01/09 Bid $ 102.76 Yield % 3.69 (a) Verify that this is the correct price for the bond. (b) In this listing, the price per $100 is rounded to the nearest $.01, and the yield rate is rounded to the nearest .01%. The quoted yield rate could be any number from 3.685% to 3.695% (and would be rounded to 3.69%, we can think of 3.695% as 3.6949999%). Find the resulting prices at the two ends of that range of yield rates. BOND VALUATIONStep by Step Solution
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