P: A 8% coupon, 30-year maturity bond with par value of S1,000. Assume annual interest rate is 8% (1) What is the bond's price using semiannual compounding? (2) Ifr-10%, what is P?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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P: A 8% coupon, 30-year maturity bond with par value of $1,000. Assume annual interest rate is 8%
(1) What is the bond's price using semiannual compounding?
(2) Ifr=10%, what is P?
r(YTM): Find the YTM for a 8% coupon, 30-year bond selling at $1276.76 (semiannual coupon payments)
What is the coupon rate, current yield and YTM of the bond? What is the relationship among them?
Transcribed Image Text:P: A 8% coupon, 30-year maturity bond with par value of $1,000. Assume annual interest rate is 8% (1) What is the bond's price using semiannual compounding? (2) Ifr=10%, what is P? r(YTM): Find the YTM for a 8% coupon, 30-year bond selling at $1276.76 (semiannual coupon payments) What is the coupon rate, current yield and YTM of the bond? What is the relationship among them?
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