A government bond is issued on jan $12020,$ with a par value of $100$ TL and maturity of $7$ years.The coupon interest rate is $\%16.$However,bond pays coupons semi$-$ annually at the end of june,and December.Find the price of this bond assuming it hold on June $302023$ when the market interest rates are $\%28.($No accrued $İ$nterest$)$

If you buy this bond at the price that you calculated and hold the maturity, what is your ytm $($annual $)?İ$s this ytm fixed and certain? Explain briefly

 

Answer rating: 100% (QA)

To solve this problem we need to use the present value formula for a bond with semiannual coupon pay... View the full answer