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1. A 3-year bond with 10% coupon rate and $1000 face value yields 8% APR. Assuming annual coupon payments, calculate the price of the bond. 2. A 5-year treasury bond with a coupon rate of 8% has a face

 
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1. A 3-year bond with 10% coupon rate and $1000 face value yields 8% APR. Assuming annual coupon payments, calculate the price of the bond. 2. A 5-year treasury bond with a coupon rate of 8% has a face value of $1000. What is the semi-annual interest payment? 3. A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi- annual coupon interest payments.

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1 To calculate the price of the bond we need to calculate the present value of its cash flows coupon View the full answer


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Introduction to Operations Research

Introduction to Operations Research

ISBN: 978-1259162985

10th edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

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Posted Date: June 05, 2023 07:27:47
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The yield to maturity (YTM) is the percentage rate of return for a bond assuming that the investor holds the asset until its maturity date. This video will give a complete tutorial on how to calculate Yield to Maturity on Microsoft Excel

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