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A coupon bond that matures in 3 years paying an annual coupon of 8% (in semi-annual...

A coupon bond that matures in 3 years paying an annual coupon of 8% (in semi-annual installments) with a face value of $1000 has an annual yield-to-maturity of 6%. The bond made its most recent interest payment yesterday, and so has 6 interest payments remaining. What is the price of the bond? Round the price to two decimal places (i.e. 123.45).

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS NOTHING WAS MENTIONED, USED EXCEL TO SOLVE. IF YOU NEED ANY OTHER METHOD LET ME KNOW, WILL DO IT FOR YOU

Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum ー E ゴWrap Text ta copy ▼ в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard AJ120 AH Alignment Number Cells Al Al AK AL AM AN AO AP AQ AR AS AT 108 109 110 YEARS COUPON YTM PAR VALUE COMPOUNDING IN A YEAR PRICE = 896 6% 1000 112 113 114 115 116 $ 1,054.17 EXCEL PV(AN112/AN114,AN110 AN114,-(AN111/2)FAN113,-AN113) EXCEL PV(6%/2,3*2,-(8%/2) 1000,-1000) 118 119 120 121 122 123 124 125 126 LP, IP, MRP, INFLATION YIELDWARRANTrefund bondCLEAN INVOICE PRICE Sheeti Sheet3 Sheet4 05:26 31-01-2019

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