A P1O0,000 semi-annual government bond is currently selling at 98 if the coupon rate is 8% and its maturity is 5 years, answer the following: a What is the current price of the bond? b. What is the Yield to maturity? Round-off final answer only to two decimal places. c.What is the coupon yield of the bond? Round-off final answer only to two decimal places. d.Assume a YTM of 10% and quarterly coupon payment. compute the price of the bond. Round-off final answer only to two decimal places.

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 7DTM
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A P1O0,000 semi-annual government bond is currently selling at 98 if the coupon rate is 8% and its maturity is 5 years, answer the following:
a What is the current price of the bond?
b. What is the Yield to maturity? Round-off final answer only to two decimal places.
c.What is the coupon yield of the bond? Round-off final answer only to two decimal places.
d.Assume a YTM of 10% and quarterly coupon payment. compute the price of the bond. Round-off final answer only to two decimal places.
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