Question
Your grandmother is trying to determine the value of her bond portfolio and turns to you for help. Find the current market values of the
Your grandmother is trying to determine the value of her bond portfolio and turns to you for help. Find the current market values of the components of your grandmothers portfolio.
100 zero coupon bonds with a $1,000 face value and 4 years to maturity. The YTM on these bonds is 4.3% (assume annual compounding here). What is the total value of these 100 zero coupon bonds?
50 bonds with a $1,000 face value and a coupon rate of 5%. These bonds have 12 years left to maturity and pay coupons on a semiannual basis. The YTM of these bonds is 5.5%. What is the total value of these 50 bonds?
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