Question: please help with this practice problem, thanks so much for your help! 3. Unless stated otherwise assume an APR of 6% compounded semi- annually (a)

please help with this practice problem, thanks so much for your help!
please help with this practice problem, thanks so much for your help!

3. Unless stated otherwise assume an APR of 6% compounded semi- annually (a) (4 points) What is the effective annual rate? what is the ef- fective monthly rate? what is the effective two year rate? (b) (6 points) What is the price of a three year zero coupon bond with a face value of $5000? (C) (10 points) You own government bonds with a face value of $2 million. The bonds mature 6 years and 3 months from today and have a coupon rate of 12%, paid semi-annually. The next coupon will be paid in three months. How much are the bonds worth today

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!