# Question

Suppose the effective semiannual interest rate is 3%.

a. What is the price of a bond that pays one unit of the S&P index in 3 years?

b. What semiannual dollar coupon is required if the bond is to sell at par?

c. What semiannual payment of fractional units of the S&P index is required if the bond is to sell at par?

a. What is the price of a bond that pays one unit of the S&P index in 3 years?

b. What semiannual dollar coupon is required if the bond is to sell at par?

c. What semiannual payment of fractional units of the S&P index is required if the bond is to sell at par?

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