Kai buys a $5,000.00 bond maturing in 5 years with a 3.500% coupon. The bond is priced to yield 3.750% compounded bi-weekly. Howmuch does he pay?P = $5,775.32.a.%3Db. P = $5,133.62.%3Dc. P= $5,725.96.O d. P = $4,936.17.%3DO e.P = $4,985.53.Certainty e : Oc=1 (Unsure: <67%) Oc=2 (Mid: >67%) Oc=D3 (Quite sure: >80%)

The price of the bond is the the sum of present value of all the coupon payments received and the…

Answered: Kai buys a $5,000.00 bond maturing in 5…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jay purchased a Treasury bond with a coupon rate of 4.49% and face value of $100. The maturity date of the bond is 15 March 2029. (b) In fact, Yuri changes his plan and Jay plans to sell this bond on 7 January 2022. What was Jay's sale price (rounded to four decimal places)? Assume a yield of 3.02% p.a. compounded half - yearly. Question Answer a. 111.6359 b 110.8412 c. 109.1924 d .108.7396

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Kai buys a $5,000.00 bond maturing in 5 years with a 3.500% coupon. The bond is priced to yield 3.750% compounded bi-weekly. How much does he pay? O a. P = $5,775.32. O b. P = $5,133.62. O c. P = $5,725.96. O d. P = $4,936.17. O e. P= $4,985.53.