Please solve, show work, and give detail explanation
Homework Answers
1.
Using financial calculator
N=13*2=26
I/Y=9.2%/2=4.6%
PV=-928.81
FV=1000
CPT PMT=41.25
Hence, coupon rate=41.25*2/1000=8.250%
2.
=Clean price+days since last coupon/period between 2
coupons*periodic coupon
=945+4/6*7.3%*1000/2
=969.33
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