question on bonds

profiletrackrnr232

Go to the Yahoo Finance Bonds Center Retrieved from http://finance.yahoo.com/bonds. Under Bonds Center click Bond Screener. Click the Corporate check box under Bond Type then click Find Bonds. Choose the 2nd bond on pg1 (Federal Home Loan Banks). Assume interest rates for bonds today is 5% for an AAA rated bond.

Federal Home Loan Banks

Price: 100.57     Coupon%: 1.375

  1. 1.      Calculate the price of the bond you have selected relative to the 5%.
  2. 2.      Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer. 
  3. 3.      What other factors may influence the value of a bond?
  4. Show your work usin the formula: PV= (coupon) (1-[1/ (1+r)to the power of m/r      + par value/ (1+r)m
    • Posted: 3 years ago
    • Due: 
    • Budget: $4