Converting the annual yield on a bond | to comaparable bonds that make quartely coupon payments

CFA Level I Fixed Income
#21

Genius! I got it.

What about this please?

. An investor buys a 10 year $10,000, 8% coupon, semi-annual pay bond for $9,100. He sells it four years later, just after receiving the eighth coupon payment, when its yield to maturity is 5.6%. What would be the bond price at the time of sale?

#22

Go through the buttons:

  • n = 12 (= 6 × 2)
  • i = 2.8% (= 5.6% ÷ 2)
  • PMT = 400 (= 10,000 × 8% ÷ 2)
  • FV = 10,000
  • Solve for PV
#23

Thanks. What is the rationale for picking 6 years please?

#24

It was a ten-year bond and now it’s four years later.