A twelve year 5,000 par valued floating rate bond with annual coupons has a price P...

A twelve year 5,000 par valued floating rate bond with annual coupons has a price P such that the investor’s APY is 8%. The annual coupon rate for the n-th year is given by the function .07+.0035*n

a. Find the price P

b. Find the amount of Principal P6 in the sixth coupon payment

c. Find the interest i5 in the fifth coupon payment

d. Find the amount of the discount or premium for this bond.

Please show all work for all parts

Expert Solution

jeff jeffy answered 6 months ago

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