Question

A) What is the value of a 3-year par bond with 5% coupon paid annually? B)...

A) What is the value of a 3-year par bond with 5% coupon paid annually?

B) Find the value of the bond if the YTM doubles to 10%? Is it in premium or in discount?

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Answer #1

C18 e f x --PV(C16,010,012,014) years to maturity coupon rate yield facevalue 5.0% 5.00% 1000 og von Annually: COUPON RATE 5.

C18 for --PV(C16,010,012, C14) D 3 5.0% years to maturity coupon rate yield facevalue 10.00% 1000 Annually: COUPON RATE 5.00%

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