Chris purchased a 10 year 100 par value bond where 6% coupons are paid semiannually. Cheryl purchased a 100 par value bond where 6% coupons are paid semiannually. There is no maturity date or redemption value for Cheryl’s bond. Cheryl paid $100 for her bond. The yield for Chris’s bond is 80% of the yield for Cheryl’s bond. How much did Chris pay for his bond?
Answers: 2
![PV= \dfrac{A*[ (1+r)^n -1]}{[(1+r)^n * r] }](/tpl/images/0725/1472/607f2.png)
![PV= \dfrac{3*[ (1+0.024)^{20} -1]}{[(1+0.024)^{20} *0.024 ] }](/tpl/images/0725/1472/173d2.png)
![PV= \dfrac{3*[ (1.024)^{20} -1]}{[(1.024)^{20} *0.024 ] }](/tpl/images/0725/1472/92851.png)
![PV= \dfrac{3*[1.606938044 -1]}{[1.606938044 *0.024 ] }](/tpl/images/0725/1472/11a8e.png)
![PV= \dfrac{3*[0.606938044]}{[0.03856651306 ] }](/tpl/images/0725/1472/02f56.png)
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Chris purchased a 10 year 100 par value bond where 6% coupons are paid semiannually. Cheryl purchase...
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