Question: You purchase a bond with a $ 1 0 0 , 0 0 0 face value. a . The bond has a semi - annual

You purchase a bond with a $100,000 face value.
a. The bond has a semi-annual coupon of $3,880 and a maturity of 8 years. Calculate the annual coupon rate.
b. Assume the yield to maturity is 5.800%. Calculate the present value of the face amount (as if it was a STRIPS).
c. Calculate the price of the bond. You can use the formula or Excel. If you use Excel attach your spreadsheet.
d. Calculate the present value of the coupon payments.
e. Calculate the current yield.

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