Assume the government issues a semi$-$annual bond that matures in $5$ years with a face value of $$1,000$ a coupon yield of $10$ percent. What would be the price if the yield to maturity $($semi$-$annual compounding$)$ on similar government bonds were $8\%?$

  

 

Answer rating: 100% (QA)

To calculate the price of the bond we need to use the formula for the present value of a bond P... View the full answer