Homework Answers
a
| K = Nx2 |
| Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k] + Par value/(1 + YTM/2)^Nx2 |
| k=1 |
| K =15x2 |
| Bond Price =∑ [(12*1000/200)/(1 + 14/200)^k] + 1000/(1 + 14/200)^15x2 |
| k=1 |
| Bond Price = 875.91 |
b
| K = Nx2 |
| Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k] + Par value/(1 + YTM/2)^Nx2 |
| k=1 |
| K =15x2 |
| Bond Price =∑ [(12*1000/200)/(1 + 10/200)^k] + 1000/(1 + 10/200)^15x2 |
| k=1 |
| Bond Price = 1153.72 |
c
| K = Nx2 |
| Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k] + Par value/(1 + YTM/2)^Nx2 |
| k=1 |
| K =15x2 |
| Bond Price =∑ [(12*1000/200)/(1 + 12/200)^k] + 1000/(1 + 12/200)^15x2 |
| k=1 |
| Bond Price = 1000 |
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