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i want yo now how to di this question, this is the past paper. 6. You observe a two-year bond with annual coupons of 8
i want yo now how to di this question, this is the past paper.
6. You observe a two-year bond with annual coupons of 8 on a par value of 100 (C-8%). Its annual yield to maturity (YTM) is 10.00% now and you should assume this yield will also hold at different times over its life too. REQUIRED a) At the given yield to maturity (YTM), calculate the current price on this two-year, 8% p.a. annual bond which has a face value of 100 (show a positive number, to two decimal places). (1 mark) b) Assuming the same YTM of 10%, what price is required in a year's time, just after the coupon of 8 is paid? (show a positive number to two decimal places) (1 mark) c) Although this is an annual bond, calculate its semi-annual equivalent, in percent to two decimal places (e.g. 1.23 foir 1.23%). (1 mark) d) What dirty settlement price in six months time (i.e. with 18 months to maturity) is consistent with the same yields (to two decimal places)? (1 mark). e) What clean price in six months time (i.e. with 18 months to maturity) is consistent with the dirty price you just calculated? C a 6 /10 > (1 mark) 16:40 2022/177 E IMI +
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