Homework Assignment – Week 2

Given a 4-year bond with a $1000 face value and a 5% coupon rate, annual compounding (annual periodic interest payments), find the price of the bond if the market rate for similar bonds is 6%. Numerical Solution. Step 1: Calculate the coupon payment . CP = Par(CR) = $1000 x 0.05 = $50. Step 2: Assign values to the variables. Step 3: Apply the ... ................
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