a) Find the price of a 7-year maturity semi-annual bond with a coupon of 6% (annualized) and a continuously compounded yield of 5%. Use continuous compounding.

b) Suppose instead that the price of the above bond is $101.00. Use Goal Seek to calculate the bond's yield. Hint: Use Goal Seek to find the yield that sets the difference between your newly calculated price and the specified $101.00 price to zero.

Answer rating: 100% (QA)

a Find the price of a 7year maturity semiannual bond with a coupon of 6 annua... View the full answer