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Rate Convention: 1 = EAR, 0 = APR 0 Annual Coupon Rate (CR) 7,00% Yield to Maturity (Annualized) (YTM) 4,00% Number of Payments / Year
| Rate Convention: 1 = EAR, 0 = APR | 0 | ||||||||
| Annual Coupon Rate (CR) | 7,00% | ||||||||
| Yield to Maturity (Annualized) (YTM) | 4,00% | ||||||||
| Number of Payments / Year (NOP) | 4 | ||||||||
| Face Value (PAR) |
| ||||||||
| Outputs | |||||||||
| Discount Rate / Period (RATE) | |||||||||
| Coupon Payment (PMT) | |||||||||
| Dynamic Chart Outputs | |||||||||
| Time to Maturity (Years) | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
| Number of Periods to Maturity | |||||||||
| Bond Price of Coupon Bond | |||||||||
| Bond Price of Par Bond | |||||||||
| The following questions relate to the coupon and par bond described above | |||||||||
| (b) Is the bond price of this coupon bond ever below the price of the par bond? Explain your | |||||||||
| answer | |||||||||
| (c.) What happens to the price of this coupon bond as time to maturity declines? Explain your | |||||||||
| answer | |||||||||
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Applied Conic Finance
Authors: Dilip Madan, Wim Schoutens
1st Edition
1107151694, 978-1107151697
