I would like to know how to find the NPER/N of this problem ( 38.5 ) step- by- step with pen-and-paper and with finance calculator.

discount to face vur at par. The lowest coupon de is zero. ideo -o-coupon bond with s assume it is now , bond. We will also of 4.3% stated annu. EXAMPLE 6.1 Zero-coupon bond Problem The Col atures on October 1, 2027. Let's assume oblem The Commonwealth of Kentucky issued a zero-coupon a par value of $1,000 that matures on Oct tober 1, 2007, the original issue date of this zero-coupon bond. w me the original issue of the bond had a yield to maturity of 4.3% ally. What was the bond's original issue price these bonds as semiannual he number of six-month -month periods until Solution Remember ution Remember that it is customary to price these bonds as sem nds. So we will count the number of periods as the number of six Periods to maturity. Here we have twenty years or forty six-month peri maturity. 043/2 = 0.0215 or METHOD 1 Using the equation The yield is 4.3%, so the semiannual discount rate is 0.043/2 = 0.02 2.15%: a = $1,000 X 0.4270 = $427.04 (1 + 0.0215) 40 bond price = $1,000 X When we look at Table 6.1, we see that the price of the Kentucky bond is 43.18%, or $431.80. If we use the stated yield of 4.410% and price it from August 1, 2008, the current date of the table, we have 38.5 semiannual periods left for the bond. We would therefore have bond price = $1,000 X 5 = $1,000 X 0.43184 = $431.84 (1 + 0.02205) 38.5 We can also use a spreadsheet or the TVM keys on a calculator to find the price of this bond. METHOD 2 Using the TVM keys Mode: P/Y = 2 and C/Y = 2 Input 38.5 4.410 ? KeyNWU CPT -431.84 0.00 PMT 1,000 FV