2 3 You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the dollar price of the bond? Assume semiannual compounding periods. Input area: 5 5 Settlement date 7 Maturity date 8 Coupon rate Coupons per year Redemption value (% of par) 0 1 Yield to maturity 67 2 Par value 3 $ 7 Output area: 8 9 Price (% of par) 0 Price 1/1/2020 1/1/2044 0.00% 2 100 4.20% 4 (Use cells A6 to B12 from the given information to complete this question. You mu 5 this question. Leave the "Basis" input blank in the function. You may enter a const 6 10,000 3,687.77

2 3 You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the dollar price of the bond? Assume semiannual compounding periods. Input area: 5 5 Settlement date 7 Maturity date 8 Coupon rate Coupons per year Redemption value (% of par) 0 1 Yield to maturity 67 2 Par value 3 $ 7 Output area: 8 9 Price (% of par) 0 Price 1/1/2020 1/1/2044 0.00% 2 100 4.20% 4 (Use cells A6 to B12 from the given information to complete this question. You mu 5 this question. Leave the "Basis" input blank in the function. You may enter a const 6 10,000 3,687.77

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6DTM

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