audia4

May 4th 2006, 08:01 PM

I was working on the question of WEEk OF FEBRUARY 20/06.

The question was: An n year bond has face and redemption amount 100. The bond has level semiannual coupons and the yield rate is a nominal annual rate of 6% compounded semiannually. The bond's amortized value just after the 8th coupon is 121.13 and just after the 10th coupon it is 120.39. Find the original price of the bond.

my solution

OB_10 = OB_8(1+i)^2 -100(r)s_2, then using the value for r, I used

0B_10= OB_1(1+i)^9 -frs_1. Is this correct??

The question was: An n year bond has face and redemption amount 100. The bond has level semiannual coupons and the yield rate is a nominal annual rate of 6% compounded semiannually. The bond's amortized value just after the 8th coupon is 121.13 and just after the 10th coupon it is 120.39. Find the original price of the bond.

my solution

OB_10 = OB_8(1+i)^2 -100(r)s_2, then using the value for r, I used

0B_10= OB_1(1+i)^9 -frs_1. Is this correct??