Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$5,831.61
Visitor$1,088.61
cuiting$1,079.70
Skywalke...$1,060.00
Visitor$864.70
Visitor$840.00
Carolll$823.33
trungbin$803.09
Jade$785.80
alison$771.70
Visitor$760.00
zy$699.70
ninalee$679.70
Visitor$650.00
Visitor$637.00
Nisrita$620.33
Visitor$603.33
Visitor$600.00
Kyrie Ir...$590.00
Visitor$574.70
 

Question 765  bond pricing, no explanation

An investor bought a 5 year government bond with a 2% pa coupon rate at par. Coupons are paid semi-annually. The face value is $100.

Calculate the bond's new price 8 months later after yields have increased to 3% pa. Note that both yields are given as APR's compounding semi-annually. Assume that the yield curve was flat before the change in yields, and remained flat afterwards as well.




Copyright © 2014 Keith Woodward