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