What is the value of the bond? Par Value=1000 A) issued in May 2019, maturity May...

Question

Question

What is the value of the bond?

Par Value=1000

A) issued in May 2019, maturity May 2024 Y=2% Coupon=1.25%

B) issued August 2015 maturity=August 2025 Y=6.38 Coupon=5.3%

both Semiannual

Please answer A and B

business finance

Answer 1

Answer #1

A 1 Value of bond is equal to the present value of cash flow at given discount rate A) 1000 6 7 8 9 10 11 Par value Years Yie

B 1 2 Value of bond is equal to the present value of cash flow at given discount rate 1000 6 7 8 A) Par value Years Yield Cou

Answer 2

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