Calculation of fair price of bond


Assume that two UK government bonds have same face values with £100. One has an outstanding maturity of 2.5 years. Its coupon rate is 9.75% and coupons are paid semi-annually. If investors demand a yield of 8%, what is the fair price of this bond

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: Calculation of fair price of bond
Reference No:- TGS062290

Expected delivery within 24 Hours