Calculate the price of an eight percent annual coupon

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Reference no: EM132873531

Question 1. What is the price of a zero-coupon bond that with?

a) maturity of 10 years and yield-to maturity of 8%

b) maturity of 10 years and yield to maturity of 10%.

Question 2. A bond with a coupon rate of 7% makes semiannual coupon payments on Jan 15 and July 15 of each year. A newspaper reports the price as 100:02 on Jan 30. What is the invoice price of the bond? (Par value=$1,000)

Question 3. Calculate the price of an 8% annual coupon (paid semiannually), 2-year, $1,000 par valued bond if the current annual market interest rate is 8%.

Reference no: EM132873531

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