Question

Bond prices. Price the bonds from the following table with semiannual coupon payments: a. Find the price for the bond in the following table: (Round to the nearest cent.) Coupon Rate Par Value $1,000.00 Years to Maturity 15 Yield to Maturity 10% Price $ 5%

Answer 1

A E 1 Par Value 2 $1,000 3 $1,000 4 $5,000 $1,000 B Coupon Rate 5% 10% 7% 11% C D Years to Yield to Maturity Maturity 15 10% 25 6 % 10 11% Price $615.7 $1,514.6 $4,660.2 $1,000.0 8% 30 7 Frequency 2.00 semi-annual payment

1 Par Value 2 1000 3 1000 4 5000 5 1000 Coupon Rate 0.05 0.1 0.07 0.11 Years to Maturity 15 25 10 Yield to Maturity 0.1 0.06 0.08 0.11 Price =-PV(D2/$B$7,C2*$B$7,B2*A2/$B$7,A2) --PV(D3/$B$7,03*$B$7,B3*A3/$B$7,A3) --PV(D4/$B$7,04*$B$7,84*A4/$B$7,44) =-PV(D5/$B$7,05*$B$7,B5* A5/$B$7,A5) 7 Frequency semi-annual payment