Face value of Bond (F) = $2,000
Coupon rate = 6%
Coupon frequency = semiannually
Semiannual Coupon Amount(C) = 3%*2000= $60
Semiannual Yield to maturity (r) = 4%/2 = 2%
Years to maturity = 15
Coupon periods to maturity(n) = 15*2 = 30
Price of Bond can be computed with following equation:
putting the values:
Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
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