Computing bond new price


Problem:

A 10 year Australian government bond was just issued at par with a yield of 3.9% pa. The fixed coupon payments are semi-annual. The bond has a face value of $1,000. Six months later, just after the first coupon is paid, the yield of the bond decreases to 3.65% pa.

Requirement:

Question: What is the bond's new price?

Note: Please provide through step by step calculations.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Computing bond new price
Reference No:- TGS0884906

Expected delivery within 24 Hours