Answer to Question #283364 in Finance for Karim

Question #283364

what is the Price of U.S Coupon Bond issued in May 2018 and the Maturity date is May 2020 , with Par value $30 , yearly Coupon payments $5 ,and Interest Rate 7% ?

Expert's answer

The price is:

"P = 5\u00d7\\frac{1-(1+0.07)^{-2}} {0.07} + \\frac{30} {1.07^2} = 35.24."

Learn more about our help with Assignments: Finance

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. At one Starbucks café in Swansea, cars arrive at the Drive-Thru at a rate of 25per hour and only on
2. Zoro Bhd recently issued 10-year bonds at a price of RM1,000. These bondspay 3% in interest each six
3. 1. If you would like to accumulate RM 8,000 over the next 5 years, how much you must deposit at the
4. You decide to begin saving towards the purchase of a new laptop in 3 years. If you put RM 1,000 at
5. Urgent Corporation had earnings per share of $4 last year, and it paid a $2 dividend.Total retained
6. Bond details for below dateIssue Date : 1st Oct 2000Par: $1,200Coupon interest:6% ( Semi annual paym
7. In response to the 2020 economic disruption, the Federal Reserve dropped the commercial bank reserve

Who Can Help Me with My Assignment

There are three certainties in this world: Death, Taxes and Homework Assignments. No matter where you study, and no matter…
How to Finish Assignments When You Can’t

Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for.…
How to Effectively Study for a Math Test

Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…