Suppose the effective semiannual interest rate is 3 a What is the price of a bond that pays one unit of the S P index in 3 years b What semiannual dollar coupon is required if the bond is to sell at par c What semiannual payment of fractional units of the S P index is required if the bond is to sel...

For this problem let B a The prepaid forward price is 1200 e 00153 11 ...

Suppose the effective semiannual interest rate is 3%. a. What is the price of a bond that

Question:

Suppose the effective semiannual interest rate is 3%.
a. What is the price of a bond that pays one unit of the S&P index in 3 years?
b. What semiannual dollar is required if the bond is to sell at par?
c. What semiannual payment of fractional units of the S&P index is required if the bond is to sell at par? Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...