PSYC 221 Chapter : IMG 0104

• School: Southeastern Louisiana University
• Department: Psychology
• Course: PSYC 221
• Professor: All

Document Summary

The following document contains practice problems for your fifth quiz. The equations listed below will be printed on the front of the test. You are expected to memorize any equation not printed on this first page. Price = x {[1 1/(1. 015)8]/0. 015} + ,000/1. 0158 = ,112. 29: bond x pays coupons semiannually. Therefore, the annual coupon rate is 15: bond y pays coupons annually. Therefore, the annual coupon rate is 7. 5: bond z pays coupons semiannually. 2: bond a has a price of . 46, a face value of ,000, an annual coupon rate of 9% paid semiannually and 5 years until maturity. Price = x {[1 1/(1. 0475)10]/0. 0475} + ,000/1. 047510 = . 46: bond b has a price of . 55, a face value of ,000, an annual coupon rate of 9% paid semiannually and 5 years until maturity. Price = x {[1 1/(1. 0425)10]/0. 0425} + ,000/1. 042510 = . 03. We need a bigger difference between the coupon rate and the ytm.