Par 100.00 12.00% 2 Y (constan 4.71 Y year 59.17 y 15.00% t outstandir coupon principal payment 96.19 price app 97.09 price 1 100.00 1.00 3.71 4.71 2. 96.29 0.96 3.74 4.71 92.55 0.93 3.78 4.71 88.77 0.89 3.82 4.71 84.95 0.85 3.86 4.71 81.09 0.81 3.90 4.71 77.19 0.77 3.94 4.71 8 73.26 0.73 3.97 4.71 9. 69.28 0.69 4.01 4.71 10 65.27 0.65 4.05 4.71 11 61.21 0.61 4.10 4.71 12 57.12 0.57 4.14 4.71 13 52.98 0.53 4.18 4.71 14 48.80 0.49 4.22 4.71 15 44.58 0.45 4.26 4.71 16 40.32 0.40 4.30 4.71 17 36.02 0.36 4.35 4.71 18 31.67 0.32 4.39 4.71 19 27.28 0.27 4.43 4.71 20 22.85 0.23 4.48 4.71 21 18.37 0.18 4.52 4.71 22 13.84 0.14 4.57 4.71 23 9.28 0.09 4.61 4.71 24 4.66 0.05 4.66 4.71 LD700
Par 100.00 12.00% 2 Y (constan 4.71 Y year 59.17 y 15.00% t outstandir coupon principal payment 96.19 price app 97.09 price 1 100.00 1.00 3.71 4.71 2. 96.29 0.96 3.74 4.71 92.55 0.93 3.78 4.71 88.77 0.89 3.82 4.71 84.95 0.85 3.86 4.71 81.09 0.81 3.90 4.71 77.19 0.77 3.94 4.71 8 73.26 0.73 3.97 4.71 9. 69.28 0.69 4.01 4.71 10 65.27 0.65 4.05 4.71 11 61.21 0.61 4.10 4.71 12 57.12 0.57 4.14 4.71 13 52.98 0.53 4.18 4.71 14 48.80 0.49 4.22 4.71 15 44.58 0.45 4.26 4.71 16 40.32 0.40 4.30 4.71 17 36.02 0.36 4.35 4.71 18 31.67 0.32 4.39 4.71 19 27.28 0.27 4.43 4.71 20 22.85 0.23 4.48 4.71 21 18.37 0.18 4.52 4.71 22 13.84 0.14 4.57 4.71 23 9.28 0.09 4.61 4.71 24 4.66 0.05 4.66 4.71 LD700
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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Can you show how the computation was made from the solutions guide
Transcribed Image Text:Par
100.00
12.00%
2
Y (constan
4.71
Y year
59.17
y
15.00%
outstandir coupon
principal payment
96.19 price app
97.09 price
1
100.00
1.00
3.71
4.71
2
96.29
0.96
3.74
4.71
3
92.55
0.93
3.78
4,71
88.77
0.89
3.82
4.71
84.95
0.85
3.86
4.71
81.09
0.81
3.90
4.71
7
77.19
0.77
3.94
4.71
8.
73.26
0.73
3.97
4.71
9
69.28
0.69
4.01
4.71
10
65.27
0.65
4.05
4.71
11
61.21
0.61
4.10
4.71
12
57.12
0.57
4.14
4.71
13
52.98
0.53
4.18
4.71
14
48.80
0.49
4.22
4.71
15
44.58
0.45
4.26
4.71
16
40.32
0.40
4.30
4.71
17
36.02
0.36
4.35
4.71
18
31.67
0.32
4.39
4.71
19
27.28
0.27
4.43
4.71
20
22.85
0.23
4.48
4.71
21
18.37
0.18
4.52
4.71
22
13.84
0.14
4.57
4.71
23
9.28
0.09
4.61
4.71
24
4.66
0.05
4.66
4.71
Transcribed Image Text:4. Consider a fixed rate 2-year annuity bond. The coupon rate is 12% per year and payments
occur monthly. The yield to maturity is 15% per year. What is the price of the bond when
you do not approximate with yearly payments?
Expert Solution
Step 1
Coupon rate = 12%
Yield to maturity = 15%
Bond value = 100
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