# Question: Calculate the price of a bond with FV of 1 000

Calculate the price of a bond with FV of $1,000, a coupon rate of 8 percent (paid semi-annually), and five years to maturity when:

a. kb = 10 percent

b. kb = 8 percent

c. kb = 6 percent

a. kb = 10 percent

b. kb = 8 percent

c. kb = 6 percent

## Relevant Questions

Suppose that, several years ago, the Canadian government issued three very similar bonds; each has a $1,000 face value and a 10-percent coupon rate and will mature in five years. The only difference between the bonds is the ...A zero coupon bond has a par value of $1,000 and will mature in eight years. a. Calculate the current price of this bond if the market yield is: i) 7.75 percent ii) 5.25 percentb. In each case, calculate the percentage ...At maturity, each of the following zero coupon bonds (pure discount bonds) will be worth $1,000. For each bond, fill in the missing quantity in the following table. Assume semi-annualcompounding.A bond that matures in 10 years is callable in three years at a call price of $1,025. The bond has a semi-annual coupon rate of 8 percent. If the YTM is 7.3 percent and the YTC is 6.92 percent, what is the bondâ€™s current ... Suppose that a 6-percent, annual-pay, Government of Canada bond that matures in two years has a yield to maturity of 6.75 percent. If inflation is expected to be 2.5 percent per year over the next two years, what coupon ...Post your question