Calculate the price of a five-year bond that has a coupon


Here are two basic Bond calculation problems. Show all your work (not just the final answer).

1. Calculate the price of a five-year bond that has a coupon of 6.5% paid annually. The current market rate is 5.75%.

2. Lowboy Corp. issued a five-year bond one year ago with a coupon of 8 percent. The bond pays interest semiannually. If the yield to maturity on this bond is 9 percent, what is the price of the bond?

KEEP THE ANSWER BASIC NOT LONG AND DEFENITLY NOT IN A "SCHEDUALE" BE CLEAR.

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Financial Management: Calculate the price of a five-year bond that has a coupon
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