Consider a $3000 par value bond that pays 5 annual coupons at a nominal rate of...
Consider a $3000 par value bond that pays 5 annual coupons at a nominal rate of 4% compounded annually. Suppose that the bond was purchased for $2981.91.
a) Price using the Method of Averages yield = $ ____
b) Rate of Change of Price (to 2 decimals) using the Method of Averages yield = $ ____ per % change
Homework Answers
![2981.91 120 Bond price Annual coupon Period 4.14% 10 [coupon (3000 bond price)5 [(3000+bond price)/2] 12 13 2981 4.14% Price using average yield 15 16 17 18 19 20 21 2849.00 5.14% Price using average yield 4.43% Change in price](http://img.homeworklib.com/questions/8c9f6f20-71d0-11ea-856a-47593e381fec.png?x-oss-process=image/resize,w_560)
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