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Six months ago, you purchased a $ 1 0 0 , 0 0 0 , 4 % coupon bond with 4 years to maturity. The
Six months ago, you purchased a $ coupon bond with years to
maturity. The bond makes semiannual coupon payments, and, at the time of
purchase, had a yieldtomaturity of
a Calculate price per hundred dollars of face value you paid for the bond.
b Today, after noticing that the yield has increase to you sell the bond. What is
the current price per hundred dollars of face value
c Calculate your gains or losses, and the holding period yield from the purchase and
subsequent sale of the bond.
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