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The prices for coupon bonds with face value $1000 and annual 4.5% coupons (paid at the end of each year) are given below: Term Price
The prices for coupon bonds with face value $1000 and annual 4.5% coupons (paid at the end of each year) are given below:
Term | Price |
1 | 1000.0000 |
2 | 990.9080 |
3 | 973.8148 |
4 | 949.9390 |
Using annual effective spot rates, calculate the price (to the nearest $1) of a 4-year bond with face value $1000 and annual 4% coupons paid at the end of each year.
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