QUESTION

# Bonds

7-21 Compute Bond Price Compute the price of a 3.8 percent coupon bond with 15 years left to maturity and a market interest rate of 6.8 percent. (Assume interest payments are semiannual.) Is this a discount or premium bond?

7-27 Yield to Maturity A 5.65 percent coupon bond with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) • @ • 1 order completed ANSWER Tutor has posted answer for$10.00. See answer's preview

$10.00 ***** Value ** Bond ***** =$ 103525

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Coupon rate * *****

Interest is semi *******

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15years

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