Recalculate the price of bond


In February 2009 Treasury 6s of 2026 offered a semiannually compounded yield of 3.5965%. Recognizing that coupons are paid semiannually, calculate the bond's price. 3-4: Here are the prices of three bonds with 10-year maturities: Bond Coupon % Price % 2 81.62 4 98.39 8 133.42 If coupons are paid annually, which bond offered the highest yield to maturity? Which had the lowest? Which bonds had the longest and shortest durations? 3-7: Look again at Table 3.4. Suppose that spot interest rates all change to 4%-a "flat" term structure of interest rates. a. What is the new yield to maturity for each bond in the table? b. Recalculate the price of bond A?

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Finance Basics: Recalculate the price of bond
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