Using the semi annually compounded yield curve in Table 2 4, price the following securities (a) 5 year zero coupon bond (b) 7 year coupon bond paying 15 semiannually (c) 4 year coupon bond paying 7 quarterly (d) 3 1 4 year coupon bond paying 9 semiannually (e) 4 year floating rate bond with zero sp...

Using Table 24 obtain the discount factor Zt T for e ...

Using the semi-annually compounded yield curve in Table 2.4, price the following securities: (a) 5-year zero coupon

Question:

Using the semi-annually compounded yield curve in Table 2.4, price the following securities:
(a) 5-year zero bond
(b) 7-year bond paying 15% semiannually
(c) 4-year bond paying 7% quarterly
(d) 3 1/4-year bond paying 9% semiannually
(e) 4-year floating rate bond with zero spread and semiannual payments
(f) 2 1/2-year floating rate bond with zero spread and annual payments
(g) 5 1/2-year floating rate bond with 35 basis point spread with quarterly payments
(h) 7 1/4-year floating rate bond with 40 basis point spread with semiannual payments

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...