Question #38598
Compute the premium or discount on the sale of a $2,000 bond redeemable at 101.5 in four years’ time, if it is bought to yield 12%, compounded quarterly and the coupon rate is 10.75% semi-annually and What is the purchase price of the bond ?
Expert's answer
Answer on question #38598 – Math - Other
bond 2000
ypayment at maturity 101,50%
yield on bank 112%
Interest on payments 10,75% quarterly payment twice a year
Price at maturity 2030
Price Expected return 2273,6
