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A 5-year government bond has a face value of £1,000 and an annual nominal coupon
rate of 8%. Assume that the relevant nominal market interest rate (annualized) is equal
to 10%. The coupon payments are made quarterly.
(a) Calculate the present
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I meant I think the answer for
by Bartleby ExpertI think the answer for the effective market interest rate is wrong. Can you check it for me please? Because it is 5 years bond and if there is quarterly interest payment, should "n" so, number of periods not be 20 instead 4?
by Bartleby Expert