Bond Valuation
Fixed Income Securities and Markets
Question A.1
Given the following bond:
starting date 30/09/2011 
maturity date 30/09/2014 
coupon rate 4.00% 
coupon frequency annual 
day count act/act 
nominal value 100 
a) Calculate the price of the security on the 30/09/2011, if the yield to maturity is 5% (NB: Price=PV of future cash flows). b) Given the price and the yield to maturity of the bond, calculate the three components of the (expected) total return of this investment (if you invest 100 …show more content…

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