Question: Please answer #4, answer is to the left. Calculate the price of the bond as well as the book value of the bond at heend
Please answer #4, answer is to the left.
Calculate the price of the bond as well as the book value of the bond at heend AVV 4, Bill buys a 15-year, $700 par-value bond with 8% semi-annual coupons and redemption value $1000. The price of the bond assumes an annual effective interest rate of 5% when receiving each coupon payment, Bill after receiving the final coupon payment and the redemption value of the bond, Bill has earned a yield 7% compounded continuously on his investment in the bond. Calculate K 0immediately deposit it into an saving account earning a nominal interest rate K compounded quarterly. Right lear S5 000 par value bond with 8% quarter coupons and redemption value $4000 earns a yield of nrincipal for the 9th quarter period is $35.6156
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