A $11,500 bond with a 4.50% coupon rate paid semi-annually was purchased with an 8 year maturity when yields were 3.50% compounded semi-annually. The question asks what the book value of the bond would be after 14 payments were made on it.
A 11500 bond that has a coupon rate of 450 payable semi.pdf
1. A $11,500 bond that has a coupon rate of 4.50% payable semi-annually and maturity of 8 years
was purchased when the yield was 3.50% compounded semi-annually. What was the book value
of the bond after 14 payments? Round to the nearest cent