what would be the price of a S1,000 par bond With a 4,6% semi-annual coupon with...

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Answer 1

Answer #1

Number of periods = 11 * 2 = 22

Rate = 4.20% / 2 = 2.1%

Coupon = (0.046 * 1000) / 2 = 23

Price = Coupon * [1 - 1 / (1 + r)ⁿ] / r + FV / (1 + r)ⁿ

Price = 23 * [1 - 1 / (1 + 0.021)²²] / 0.021 + 1000 / (1 + 0.021)²²

Price = 23 * 17.474111 + 633.043675

Price = $1,034.95

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Answer 2

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