2 3 You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the dollar price of the bond? Assume semiannual compounding periods. Input area: 5 5 Settlement date 7 Maturity date 8 Coupon rate Coupons per year Redemption value (% of par) 0 1 Yield to maturity 67 2 Par value 3 $ 7 Output area: 8 9 Price (% of par) 0 Price 1/1/2020 1/1/2044 0.00% 2 100 4.20% 4 (Use cells A6 to B12 from the given information to complete this question. You mu 5 this question. Leave the "Basis" input blank in the function. You may enter a const 6 10,000 3,687.77
2 3 You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the dollar price of the bond? Assume semiannual compounding periods. Input area: 5 5 Settlement date 7 Maturity date 8 Coupon rate Coupons per year Redemption value (% of par) 0 1 Yield to maturity 67 2 Par value 3 $ 7 Output area: 8 9 Price (% of par) 0 Price 1/1/2020 1/1/2044 0.00% 2 100 4.20% 4 (Use cells A6 to B12 from the given information to complete this question. You mu 5 this question. Leave the "Basis" input blank in the function. You may enter a const 6 10,000 3,687.77
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:2
3
You find a zero coupon bond with a par value of $10,000 and 24 years to maturity.
If the yield to maturity on this bond is 4.2 percent, what is the dollar price of the
bond? Assume semiannual compounding periods.
Input area:
5
5
Settlement date
7
Maturity date
8 Coupon rate
Coupons per year
Redemption value (% of par)
0
1 Yield to maturity
67
2 Par value
3
$
7 Output area:
8
9 Price (% of par)
0 Price
1/1/2020
1/1/2044
0.00%
2
100
4.20%
4 (Use cells A6 to B12 from the given information to complete this question. You mu
5 this question. Leave the "Basis" input blank in the function. You may enter a const
6
10,000
3,687.77
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