Personal Finance & Money Asked by wowdavers on October 16, 2020
Question:
What would you pay for the following bonds assuming an annual yield rate of 7% based on semi-annual compounding (assume face value = $100)? A bond with a coupon rate of 6% maturing in 3 years and 3 months from now?
Would I approach this as I would normally but with 6.5 periods?
P = 3 * [1-(1/(1+0.035)^6.5 )]/0.035 + 100/(1+0.035)^6.5
Would this be correct?
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