Question

Q1. What is the price of the IBM coupon​ bond?

Missing information on a bond. Your broker faxed to you the following information about two monthly coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bonds is the following: B. Fill in the missing data from the information that the broker sent. What is the price of the IBM coupon bond? $0 (Round to the nearest cent.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Features Face value (Par) Coupon rate Yield to maturity. Years to maturity. IBM Coupon Bond $1,000 5.5% 8.5% 15 ? | AOL Coupon Bond $1,000 ? 5.5% 30 Price $1,073.38 Print Done

Q2. What is the price of AOL coupon bond?

Answer 1

AUGSTION Gwen Par Value = $1000 Coupon Rate= 5.5% Lite = 15 years Yield to Maturity [2 ] = 8.5% Coupon amount = 5.5% of 1000 = $55 Values Coupon Amount x Prescut Value Annuity factor (8.5%, 15 years) + face value x Paesent Value factor [8.54, 15 years) (55X 8.30423657543) + (1000 x 0-29413989102 ) b from annuty Table 456.733 + 294.140 = - &750.87 - QUESTION 2 face Value Coupon Kate - ? ? Coorou amount = ?? Yield to Maturity [r] =5,5% Years to Maturity (n] = 30 Price = $ 1073.38

Price = Coupon Amorent x Paesent Value Annisty factor (5.56%, 30years) face Value x Present value factor [565t., 30 years ] 1073.38 = (Couponi dmountx 14053374577) + (sce vatanda 1000x 0.2011 1073.38 = (14.53374517 coupondmount) + 201 1073.38- 2013 14.53374517 Coupon amount $60.02 = Coupon Amount Now Coupon Rate = Coupon drount x 100 face value _60 x 100 1000 6 6% pa.
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