Question: Answer with 4 decimals YOUR BANK is thinking to issue a regular coupon bond (debenture) with the following particulars: Maturity = 5 years, Coupon rate

Answer with 4 decimals YOUR BANK is thinking to issue a

Answer with 4 decimals

YOUR BANK is thinking to issue a regular coupon bond (debenture) with the following particulars: Maturity = 5 years, Coupon rate = 9%, Face value = $1,500, Coupon payments are annual and paid at the end of a year. In the fixed-income securities market, the yield curve for the bond similar to the one issued by YOUR BANK is flat and it is 6.500% per annum continuously compounded. As per you, what should be the issue (offer) price per bond of YOUR BANK in US dollars

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