Calculate the price of the following bonds where F is the face value c is the coupon rate N is
QUESTION
Calculate the price of the following bonds, where F is the face value, c is the coupon rate, N is the number of years to maturity, and i is the interest rate (or discount rate, or yield): a. F = $1,000, c = 8%, N = 3, i = 3% b. F = $5,000, c = 4.5%, N = 2, i = 6% c. F = $1,000, c = 0%, N = 15, i = 4% d. F = $100,000, c = 5%, N ? 8 (bond never matures), i = 2% 2. Calculate the yield on the following bonds. Round your answer to two decimal places. a. PB = $430, F = $500, c = 5%, N = 1 b. PB = $1,100, F = $1,000, c = 0%, N = 10 c. PB = $990, F = $1,000, c = 9%, N ? 8 (bond never matures)
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Calculate the price of the following bonds, where F is the face value, c is the coupon rate, N is the number of years to maturity, and i is the interest rate (or discount rate, or yield):
a. F = $1,000, c = 8%, N = 3, i = 3%
ANSWER:
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