Question
Q3 Task 1) Define a function to calculate a bond's price using the following equation: bond price = face value / (1+i)^t . Ensure the
Q3 Task
1) Define a function to calculate a bond's price using the following equation: bond price = face value / (1+i)^t. Ensure the function returns the bond price.
2) Assume you want to price a zero-coupon, 5 year corporate bond with a face value of $1,000. If interest rates are currently 7%, use your function to calculate the price of this bond.
3) Now assume you have a 5 year corporate bond with a face value of $1,000 that is currently trading at $900. Using numpy-financial, what is the current interest rate?
Plaese use python code for this tasks separately for each task
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started