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    Bond Price and Yield

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    1. A) Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate is 6.5 percent.
    B) Assume semi-annual compounding.

    2. A) Compute the price of a 4.5 percent coupon bond with 15 years left to maturity and a market interest rate of 6.8 percent.
    B) Assume interest payments are paid semi-annually, and solve using semi-annual compounding.

    3. A) A 6.85 percent coupon bond with 26 years left to maturity is offered for sale at $1,035.25. What yield to maturity [interest rate] is the bond offering?
    B) Assume interest payments are paid semi-annually and solve using semi-annual compounding.

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    https://brainmass.com/business/dividends-stock-repurchase-and-policy/bond-price-yield-595898

    Solution Summary

    This posting answers questions on bond pricing and bond yield to maturity.

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