Question: A 15 year US. Treasury bond with a face value of $1,000 pays a coupon of 5.50% (2.750k of face value every six monthst The
A 15 year US. Treasury bond with a face value of $1,000 pays a coupon of 5.50% (2.750k of face value every six monthst The reported yleid to maturity is 5.2% (a sbemonth discount rate of 5.2+2=2.6% ). a. What is the present value of the bond? b-1. If the yield to maturity changes to 1%, what will be the present value? b-2. If the yleld to maturity changes to 8 \% what will be the present value? b-3. If the yieid to maturity changes to 15%, what will be the present value? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places
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