Coupon Bond Practice Problems (solve for blue)

Coupon Bond Practice Problems (solve for blue) - UNIVERSITY...

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UNIVERSITY OF ILLINOIS College of Business - Department of Finance Finance 300 (Financial Markets) Coupon Bond Prices Face Value (FACE) Coupon Rate (CR) Market Rate (YTM) Maturity (t) # Coupons (n) 1000 0.06 0.08 5 Annual 1 2 3 [1 * 2] + 3 1/[1+YTM/n)^(t*n)] 1-[1/(1+YTM/n)^(t*n)] [C ($)]/[YTM/n] Face/[(1+YTM/n)^(t*n)] Bond Price 0.680583197 0.319416803 $750.00 $680.58 $920.15 Year # Coupon (C$) PV (C$) 1 $60.00 $55.56 2 $60.00 $51.44 3 $60.00 $47.63 4 $60.00 $44.10 5 $60.00 $40.83 Face Value = $1,000.00 $680.58 Bond Price (∑ PVCF) = $920.15 Years to Maturity Coupon Rate % Market Rate (YTM %) Current Yield 5.00 6.00% 8.00% 6.52% UNIVERSITY OF ILLINOIS
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College of Business - Department of Finance Finance 300 (Financial Markets) Coupon Bond Prices Face Value (FACE) Coupon Rate (CR) Market Rate (YTM) Maturity (t) # Coupons (n) 1000 0.06 0.04 5 Semi-Annual 1 2 3 [1 * 2] + 3 1/[1+YTM/n)^(t*n)] 1-[1/(1+YTM/n)^(t*n)] [C ($)]/[YTM/n] Face/[(1+YTM/n)^(t*n)] Bond Price 0.8203483 0.1796517 $1,500.00
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Coupon Bond Practice Problems (solve for blue) - UNIVERSITY...

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