Annual Coupon Rate 5.000% Maturity Date: 4/15/2020 Assume interest rates for bonds today is 5% for a AAA rated bond. Calculate the price of the bond you have selected relative to the 5% Coupon payments: Semiannually Par Value: $1000.00
Annual Coupon Rate 5.000% Maturity Date: 4/15/2020 Assume interest rates for bonds today is 5% for
a AAA rated bond. Calculate the price of the bond you have selected relative to the 5%
Coupon payments: Semiannually Par Value: $1000.00
Annual Rate 5.0 Semiannually: 2.50% Payment semiannual payment: $25.00 (2.50% *1000)
What is the number of periods annual and semiannual?
Using the formula
PV0 = (coupon) (1- [1/(1 + r) m])r + par value (1 + r)m
What is the bond price?
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