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A bond has a face value of $1,000, a 5% annual coupon, 5 years to maturity, and a market interest rate (YTM) of 6%. What is the price?
Look at the multiple choice options. If the bond is a discount (YTM > Coupon), eliminate any price above $1,000 immediately. fundamentals of finance coursera answers
If you are stuck on a specific peer-graded assignment (like the Excel NPV project), ensure your cell references are absolute ($A$1) rather than relative (A1). 90% of grading errors in Coursera peer review come from dragging formulas incorrectly, not from wrong math. A bond has a face value of $1,000,
A frequent trick in Coursera answers involves the compounding frequency. If the problem says "8% annual interest, compounded quarterly," you cannot simply use 8%. You must divide the rate by 4 (for four quarters) and multiply the years by 4. Missing this distinction is the #1 reason students get TVM questions wrong. If the bond is a discount (YTM >
Open WeChat to Scan QR Code
Open WeChat to Scan QR Code