You purchase a bond with a $100, 000 face value. a. The bond has a semi annual coupon of $3,880 and a maturity of 8 years. Calculate the annual coupon rate b. Assume the yield to maturity is 5.800%. Calculate the present value of the face amount (as if it was a STRIPS). c. Calculate the price of the bond. d. calculate the present value of the coupon payments. e. Calculate the current yield

You purchase a bond with a $100, 000 face value. a. The bond has a semi annual coupon of $3,880 and a maturity of 8 years. Calculate the annual coupon rate b. Assume the yield to maturity is 5.800%. Calculate the present value of the face amount (as if it was a STRIPS). c. Calculate the price of the bond. d. calculate the present value of the coupon payments. e. Calculate the current yield

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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