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##### Calculate the price of the following bonds, where F is the face value,

**Description**

solution

**Question**

Fall, 2014;Problem Set 4;(Due Tuesday, October 28);1. (40 points10 points for each part);Calculate the price of the following bonds, where F is the face value, c is the coupon;rate, N is the number of years to maturity, and i is the interest rate (or discount rate, or;yield);a. F = $1,000, c = 8%, N = 3, i = 3%;b. F = $5,000, c = 4.5%, N = 2, i = 6%;c. F = $1,000, c = 0%, N = 15, i = 4%;d. F = $100,000, c = 5%, N (bond never matures), i = 2%;2. (60 points20 points for each part);Calculate the yield on the following bonds. Round your answer to two decimal;places.;a. PB = $430, F = $500, c = 5%, N = 1;b. PB = $1,100, F = $1,000, c = 0%, N = 10;c. PB = $990, F = $1,000, c = 9%, N (bond never matures)

Paper#28281 | Written in 18-Jul-2015

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