A 3-year bond with 10% coupon rate and $1000 face value yield to maturity is 8% . Assuming annual coupon payment, calculate the price of the bond. 2. A 10-year bond with 12.5% coupon rate and $1000 face value yield to maturity is 14.5% . Assuming annual coupon payment, calculate the price of the bond.
A 3-year bond with 10% coupon rate and $1000 face value yield to maturity is 8% . Assuming annual coupon payment, calculate the price of the bond. 2. A 10-year bond with 12.5% coupon rate and $1000 face value yield to maturity is 14.5% . Assuming annual coupon payment, calculate the price of the bond.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Bond Valuation
1. A 3-year bond with 10% coupon rate and $1000 face value yield to maturity is 8% . Assuming annual
coupon payment, calculate the price of the bond.
2. A 10-year bond with 12.5% coupon rate and $1000 face value yield to maturity is 14.5% . Assuming
annual coupon payment, calculate the price of the bond.
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