Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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CCC Co issues a bond today that will pay a coupon of 8%, twice a year. The yield to maturity 
for this company is 4.8%. Calculate the price of this bond if it matures in (a) 6 years, (b) 12, and 
(c) 22.5 years, knowing that its face value is GBP 10,000. What happens to the price of this bond 
if on the same day of the issue, the yield to maturity changes to 4.6%? What if the YTM change
is in the opposite direction, to 5%? 

Please don't use excel shortcut formulas

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Thank you for your answer, can you explain to me why n is negative in this formula? =C*(1-(1+r)^-n)/r

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Thank you for your answer, can you explain to me why n is negative in this formula? =C*(1-(1+r)^-n)/r

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