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You are given Bond A and Bond B as below. Note that Bond A pays coupon payments annually while Bond B pays semiannually. (1) Calculate
You are given Bond A and Bond B as below. Note that Bond A pays coupon payments annually while Bond B pays semiannually.
(1) Calculate the prices of Bond A and Bond B
Bond A | Bond B | |
Settlement Date | 11/21/17 | 11/21/17 |
Maturity Date | 11/21/22 | 11/21/22 |
Face Value | $1,000 | $1,000 |
Annual Coupon Rate | 4% | 4% |
Interest rate (YTM) | 5% | 5% |
Maturity | 5 | 5 |
Coupon Payments per year, Frequency | 1 | 2 |
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