A $55,000 face value bond carrying a 4% coupon is purchased for $33,227.95 on March 29, 1997. The bond is later sold on September 29, 2007, for $60,231.63. Calculate the semi-annual investor’s yield.
Chapter 14 Review Exercises For all questions, assume that all interest rates or yields and payment frequencies are compounded semi-armually and that the redemption price equals the face value. Mechanics 1. A Province of Alberta $100,000 face value bond carrying a 5.03% coupon was issued on December 17, 1998, with 20 years until maturity. What […]