Homework Answers
Semiannual Coupon
Coupon Rate = 10%/2 = 5%
YTM = 8%/2 = 4%
Period = 10*2 = 20
Price of Bond = Interest * PVIFA(4%,20) + Par Value * PVIF(4%,20)
= (1000*5%) * 13.5903 + 1000 * 0.4564
= 679.515 + 456.4
Price of Bond = $ 1135.915 or $ 1135.92
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