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Katyanochek1 [597]
2 years ago
8

Compute the price of a 3.8 percent coupon bond with 18 years left to maturity and a market interest rate of 7 percent

Mathematics
1 answer:
andrey2020 [161]2 years ago
8 0

Answer:

The price is $68.47

Step-by-step explanation:

Let's assume coupon is redeemable at$100

Number of payments= 36

Each payment is3.8/2=1.9%

Nominal rate is

[1+(i^2/2)]^2= 1 + 0.07

(i^2/2)=0.0344

i^2=0.0688

Price of coupon is

P= 1.9 [1 +(1+i^2/2)^-36]/(i^2/2)+100(1+0.07)^-18

P= $68.47

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3 years ago
If s and t are integers greater than 1 and each is a factor of the integer n, which of the following must be a factor of n st ?
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