Consider a 30-year bond that pays semi-annual coupons of $500. The face value of the bond...

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Finance

Consider a 30-year bond that pays semi-annual coupons of $500.The face value of the bond is $100, 000. If the annual yield rateis 3%, calculate the following:
a) the annual coupon rate of the bond
b) the price of the bond, one period before the first coupon ispaid
c) the price of the bond, immediately after the 15th coupon ispaid
d) the price of the bond, 2 months after the 30th coupon ispaid
No financial Calculator

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4.2 Ratings (641 Votes)

Say settlement date of bond is 112019 so bond will mature on12312048a 6 month coupon See Answer

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Consider a 30-year bond that pays semi-annual coupons of $500.The face value of the bond is $100, 000. If the annual yield rateis 3%, calculate the following:a) the annual coupon rate of the bondb) the price of the bond, one period before the first coupon ispaidc) the price of the bond, immediately after the 15th coupon ispaidd) the price of the bond, 2 months after the 30th coupon ispaid*No financial Calculator*