Question $22(0\mathrm{.}5$ points$)$

Cherry Inc. issues a $4-$year default free bond which has a face value of $$1,000$ and

pays a yearly coupon rate of $9\mathrm{.}50\%.$ Given the YTM of zero$-$coupon bonds as below,

calculate the price of the price of this bond?

Maturity $($years$)$

YTM

$2$

$3$

$34\mathrm{.}85\%$

$4$

$4$

$5\mathrm{.}15\%$

$5$

$55\mathrm{.}35\%$

Instructions: Round the result to two decimal places and do not put the $"$$$"$ symbol in

the answer box. For example if you get a result of $923\mathrm{.}2893$ m$$ then write $923\mathrm{.}29$ in

the answer box below.

Your Answer:

WhatsApp