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The United States government has just issued a debt bond (04/19/2022). Said bond has a maturity of 5 years with semi-annual coupon payments. The promised
The United States government has just issued a debt bond (04/19/2022). Said bond has a maturity of 5 years with semi-annual coupon payments. The promised coupon rate is 12% annual nominal and a nominal value of one million dollars. Currently the market rate is 0.9% nominal monthly. With this information, determine what is the issue price that the bond should have. Check that the bond's cash flow calculations and the Excel price formula arrive at the same issue price. Assume 360 day years
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