Question
What is the Bond Price Adjusted for Semi-Annual Coupons? (solve w formulal, showing work) (InterestRate&BondValuation) C = Annual coupon payment C/2 = Semi-annual coupon YTM
- What is the Bond Price Adjusted for Semi-Annual Coupons? (solve w formulal, showing work) (InterestRate&BondValuation)
C = Annual coupon payment C/2 = Semi-annual coupon
YTM = Annual YTM (as an APR) YTM/2 = Semi-annual YTM
t = Years to maturity 2t = Number of 6-month periods to maturity
Coupon rate = 11%
Semiannual Coupons
YTM = 12% (APR)
Maturity = 7 years
Par = 1,000
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Finance Directors Handbook
Authors: Glynis D Morris, Sonia McKay, Andrea Oates
5th Edition
1566768691, 978-1566768696
