Bond prices. Price the bonds from the following table with semiannual coupon LOADING... payments. Par Value...

Bond prices. Price the bonds from the following table with semiannual coupon

LOADING...

payments.

Par Value	Coupon Rate	Years to Maturity	Yield to Maturity	Price
$5 ,000.00	10%	20	11%	?
$1 ,000.00	9%	20	6%	?
$1 ,000.00	6%	15	7%	?
$5 ,000.00	5%	20	9%	?

Expert Solution

Bonds			1	2	3	4
rate			5.5%	3.0%	3.5%	4.5%
nper			40	40	30	40
pmt			$ 250.00	$ 45.00	$ 30.00	$ 125.00
fv			$ 5,000.00	$ 1,000.00	$ 1,000.00	$ 5,000.00

Price of bond		=	=-pv(rate,nper,pmt,fv)
		=	$ 4,598.85	$ 1,346.72	$ 908.04	$ 3,159.84


Where,
rate	Semi annual required return
nper	semi annual number of period
pmt	semi annual coupon payment
fv	Face Value

Working:

Par Value		a	$ 5,000	$ 1,000	$ 1,000	$ 5,000
Semi annual coupon rate		b	5%	4.50%	3%	2.50%
Semi annual coupon		c=a*b	$ 250	$ 45	$ 30	$ 125

jeff jeffy answered 1 year ago

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