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Note: In this homework assignment, all the coupons are annual. In order to get the semi-annual coupons, you need to use half of the coupon
Note: In this homework assignment, all the coupons are annual. In order to get the semi-annual coupons, you need to use half of the coupon rate. Question 1: A 20-year, 4.1% annual coupon rate (paid semi-annually), $1,000 par value bond is selling for $1,057.99. Find its annualized yield. Hint: first find the yield for 6 months, then annualize it. Remember APR and EAR] Question2 a face value of $1,000 and matures in 3 years. If the bond is priced to yield 2.213% A corporate bond issued by GE Capital has 3% coupon rate paid semi-annually (annualized), what is the bond's current price? Hint: here the annualized yield is given, you need to find the semi-annual yield]
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