Question: PLEASE TAKE L=P=F=8043 3. (60 pts.) Consider a bond with face value $F (which is the last four digits of your student number) and the
PLEASE TAKE L=P=F=8043
3. (60 pts.) Consider a bond with face value $F (which is the last four digits of your student number) and the redemption value C equals to the face value F. This is a 2-year bond with semiannual coupons at the rate of 6% per annum and a yield to maturity of 8% compounded semiannually. (For example, if your student id is 192194031 then the face value is $F=$4031). (a) Find the present value (fair purchase price) of the bond. (b) Fill the following amortization schedule Period Coupon Payment Effective interest carned amortized amonut Book value 0 1 2 3 1 Total
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