need help with steps on how to solve please, will upvote. this is a two...
50.1K
Verified Solution
Link Copied!
Question
Finance
need help with steps on how to solve please, will upvote. this is a two part question please. it follows chegg guidlines
PART 1 - Michael purchased a Treasury bond with a coupon rate of 4.89% and face value of $100. The maturity date of the bond is 15 March 2029.
(a) Sam plans to purchase Michael's Treasury bond on 11 September 2021. What price will Yuri pay (round to four decimal places)? Assume a yield of 4.01% p.a. compounded half-yearly. Round your answer to four decimal places.
a. 105.9238
b. 108.0499
c. 105.6060
d. 105.6036
PART 2
Michael purchased a Treasury bond with a coupon rate of 4.89% and face value of $100. The maturity date of the bond is 15 March 2029.
(b) In fact, Sam changes his plan and Michael plans to sell this bond on 6 January 2022. What was Michael's sale price (rounded to four decimal places)? Assume a yield of 4.01% p.a. compounded half-yearly.
a. 104.5423
b. 107.2934
c. 106.9691
d. 104.8665
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
