Price path of discount and premium bonds0

Price path of discount and premium bonds0 - $901 13 $1,106...

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30 year $1,000 bond, 8% coupon, semi-annual payments YTM 0.060 0.100 Periods Remaining Price, YTM = 0.06 Price, YTM = 0.1 60 $1,277 $811 59 $1,275 $811 58 $1,273 $812 57 $1,272 $812 56 $1,270 $813 55 $1,268 $814 54 $1,266 $814 53 $1,264 $815 52 $1,262 $816 51 $1,260 $817 50 $1,257 $817 49 $1,255 $818 48 $1,253 $819 47 $1,250 $820 46 $1,248 $821 45 $1,245 $822 44 $1,243 $823 43 $1,240 $825 42 $1,237 $826 41 $1,234 $827 40 $1,231 $828 39 $1,228 $830 38 $1,225 $831 37 $1,222 $833 36 $1,218 $835 35 $1,215 $836 34 $1,211 $838 33 $1,208 $840 32 $1,204 $842 31 $1,200 $844 30 $1,196 $846 29 $1,192 $849 28 $1,188 $851 27 $1,183 $854 26 $1,179 $856 25 $1,174 $859 24 $1,169 $862 23 $1,164 $865 22 $1,159 $868 21 $1,154 $872 20 $1,149 $875 19 $1,143 $879 18 $1,138 $883 17 $1,132 $887 16 $1,126 $892 15 $1,119 $896 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400
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14 $1,113
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Unformatted text preview: $901 13 $1,106 $906 12 $1,100 $911 11 $1,093 $917 10 $1,085 $923 9 $1,078 $929 8 $1,070 $935 7 $1,062 $942 6 $1,054 $949 5 $1,046 $957 4 $1,037 $965 3 $1,028 $973 2 $1,019 $981 1 $1,010 $990 $1,000 $1,000 4 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 Price, YTM = 0.06 Price, YTM = 0.1 Bond Example Face value 1000 Coupon rate 0.08 Coupon 40 Years 30 Periods 60 semi annual YTM 0.06 Discount rate 0.03 Price ($1,276.76) Bond Example, from slide 11 of the Ch 13/14 slides Face value 1000 Coupon rate 0.07 Coupon 35 Years 10 Periods 20 semi annual YTM 7.73% Discount rate 3.86% Price ($950.00) Common financial functions, in Excel: = rate( =pv( =fv( =pmt( =nper...
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Price path of discount and premium bonds0 - $901 13 $1,106...

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