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Given four of the bond variables, determine the fifth bond variable

Accounting Apr 03, 2021

Given four of the bond variables, determine the fifth bond variable.

(A) Given Number of Periods to Maturity is 10, Face Value is $1,000, YTM is 3.2%, and Coupon Payment is $40, determine the Bond Price.

(B) Given Number of Periods to Maturity is 8, Face Value is $1,000, YTM is 4.5%, and the Bond Price is $880.00, determine the Coupon Payment.

(C) Given Number of Periods to Maturity is 6, Face Value is $1,000, Coupon Payment is $30, and the Bond Price is $865.00, determine YTM.

(D) Given Number of Periods to Maturity is 8, YTM is 3.8%, Coupon Payment is $45, and the Bond Price is $872.00, determine Face Value.

(E) Given Face Value is $1,000, YTM 4.3%, Coupon Payment is $37, and the Bond Price is $887.00, determine the Number of Periods to maturity.

Expert Solution

A) Price of bond  $1,067.55

B) Coupon payment = $26.81

C) YTM = 5.72%

D) Face value = $754.02

E) Number of periods to maturity = 39.43 years

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