Question: A bond has $ 86000 face value and the coupon rate of the bond is 4.6 % (APR). The YTM of the bond is 7.5

A bond has $ 86000 face value and the coupon rate of the bond is 4.6 % (APR). The YTM of the bond is 7.5 %. What is the fair price of the band assuming that the

maturity of the bond is 6 years and the bond pays coupon in every 4 months?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A bond has $ 86000 face value and the coupon rate of the bond is 4.6 % (APR). The YTM of the bond is 7.5 %. What is the fair price of the band assuming that the maturity of the bond is 6 years and...

I BONDS QE 10. Find the price of bond if the face value is 1000 , coupon rate is 8% , bond is semi annually , YTM is 6% and bond is issued for 14 years time a. O 1102.64108227652 b. Q...

show the steps pls A bond has $ 52000 face value and the coupon rate of the bond is 3.1 % (APR). The YTM of the bond is 4.3 %. What is the fair price of the bond assuming that the maturity of the...

A bond has $ 52000 face value and the coupon rate of the bond is 3.1 % (APR). The YTM of the bond is 4.3 %. What is the fair price of the bond assuming that the maturity of the bond is 3 years and...

A bond has $5.2000 face value and the coupon rate of the bond is 3.1 % (APR). The YTM of the bond is 43 %. What is the fair price of the bord a souming that the maturity of the bond is 3 years and...

A bond has $ 5 2 0 0 0 face value and the coupon rate of the bond is 3 . 1 % ( APR ) . The YTM of the bond is 4 . 3 % . What is the fair price of the bond assuming that the maturity of the bond is 3...

A bond has $ 7 3 0 0 0 face value and the coupon rate of the bond is 3 . 3 % ( APR ) . The YTM of the bond is 5 . 7 % . What is the fair price of the bond assuming that the maturity of the bond is 4...

Find the price of bond if the face value is 1000 , coupon rate is 8% , bond is semi annually , YTM is 6% and bond is issued for 17 years time" 1361.32 1126.32 1171.32 1211.32 please be fast

Find the price of bond if the face value is 1000 , coupon rate is 8% , bond is semi annually , YTM is 6% and bond is issued for 14 years time" 1337.64 1102.64 1147.64 1187.64

Pearl Company reported the following actual cost data for the year: Purchase of raw materials (all direct) $300,000 Direct labour cost 200,000 Manufacturing overhead costs 269,000 Change in...

The voltage across a device is given by V(t) = -2 + 10 cos 4t + 8 cos 6t + 6 cos 8t -5 sin 4t - 3 sin 6t - sin 8t V Find: (a) The period of v(t), (b) The average value of v(t), (c) The effective...

2. Which of the following catalysts is used in the Haber Process for the manufacture of ammonia? (a) finely divided iron (b) finely divided platinum (c) manganese(IV) oxide (d) vanadium(V) oxide

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...