Homework Answers
Answer:
Face value P=$500000
Coupon rate =1.5%
Coupon C=1.5%*500000=$7500
r=8%/4=2%
Since interest payment is due now
Price of Bond=C+C*(1-(1+r)^-19)/r+P/(1+r)^19
Price of Bond=7500+7500*(1-(1+2%)^-19)/2% + 500000/(1+2%)^19=$468303.84
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> ANSWER IS NOT RIGHT, FIX IT
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