A RM100 par value bond with coupons 6% payable semiannually is purchased at RM110 to yield a nominal rate of 4% convertible semiannually. A buyer purchases a similar bond with 3% semiannual coupons at the price, P. Calculate P with the same yield.

A RM100 par value bond with coupons 6% payable semiannually is purchased at RM110 to yield a nominal rate of 4% convertible semiannually. A buyer purchases a similar bond with 3% semiannual coupons at the price, P. Calculate P with the same yield.

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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Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,035.96. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.7% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is%. (Round to two decimal places.)
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Q1) A Zero-Coupon Bond with maturity in 15 years produces a gross yield of 2.5% p.a. effective and has redemption value of £100. Compute the Zero-Coupon Bond's price £ Enter a value correct to 2 decimal places Q2) A Zero-Coupon Bond with face value £100 has 4 years until maturity. The bond is priced at £87. Calculate the yield to maturity % Enter a percentage correct to 2 decimal places.
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