Question
Please show your math/calculator key strokes (i.e. N=?; I=?; FV=?; I/YR=?) 1.) *$1,000 Face Value* You are considering the purchase of a 15 year zero
Please show your math/calculator key strokes (i.e. N=?; I=?; FV=?; I/YR=?) 1.) *$1,000 Face Value* You are considering the purchase of a 15 year zero coupon bond with a face value of 8.25%. The bond is priced to yield a semiannual return of 8.25%. How much interest will you receive over the life of the bond? When will you receive that interest? What is the price or present value of the bond? 2.) A three year bond with a face value of $1000 pays an annual coupon of 6%. What would the price be if it is yielding 5%? 3.) A zero coupon bond matures three years from today, has a par value of $1000 and is priced to yield 8.5%, compounded semiannually. What is the price?
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