What is the bond price

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Question 1 - A 5 year bond with a yield of 11% (continuously compounded) pays a 10% coupon at the end of each year. The nominal value of the bond is K1000. What is the bond's price?

Question 2 - A proposal to put more emphasis on improved terminal benefits rather than wage increase was put forward by the union executive to the members. The following results were received:

Opinion

In favour

Opposed

Undecided

Total

Members





Skilled

900

300

400

1600

Unskilled

200

700

300

1200


1100

1000

700

2800

Calculate the probability that a member selected at random will be:

1. In favour of the proposal.

2. Either skilled or undecided about the proposal.

Reference no: EM133185506

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