Question: Do you know why Coupon payment is $40 ? not the $4. Because I calculated as Par*(0.08/2)= $4. but this is the manual solution? Thanks
Do you know why Coupon payment is $40 ? not the $4. Because I calculated as Par*(0.08/2)= $4. but this is the manual solution? Thanks
2. Calculate the requested measures in parts (a) through (f) for bonds A and B (assume that each bond pays interest semiannually): Bond A Bond B 9% Coupon Yield to maturity Maturity (years) Par Price $100.00 $100.00 $100.00 $104.055 (a) What is the price value of a basis point for bonds A and B? For bond A, we get a bond quote of S100.00 for our initial price if we have a 2-year maturity, an 8% coupon rate and an 8% yield. If we change the yield one basis point so the yield is 8.01%. then we have the following variables and values: C- $40, y-0.0801 /2-0.04005 and n-2(2)4
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