Chapter 2 No.

9
Consider a bond selling at par ($100) with a coupon rate of 6% and 10 years to maturity.
a. What is the price of this bond if the required yield is 15%?
𝑛 = 2 × 10 = 20
0,15
𝑟= = 0,075
2
0,06 × ($100)
𝐶= = $3
2
𝑀 = 100
1
1− 𝑀
(1 + 𝑟)𝑛
𝑃 = 𝐶[ ]+
𝑟 (1 + 𝑟)𝑛

1
1− 100
(1 + 0,075)20
𝑃 = 3[ ]+
0,075 (1 + 0,075)20

𝑃 = 30,5834 + 23,5413
𝑃 = 54,1247
b. What is the price of this bond if the required yield increases from 15% to 16%, and by what
percentage did the price of this bond change?
Jika r 15% harga obligasi di $ 54,1265 perhitungan sama dengan poin a
Untuk r 16% maka perhitungan sebagai berikut:
1
1− 𝑀
(1 + 𝑟)𝑛
𝑃 = 𝐶[ ]+
𝑟 (1 + 𝑟)𝑛

1
1− 100
(1 + 0,08)20
𝑃 = 3[ ]+
0,08 (1 + 0,08)20

𝑃 = 29,4544 + 21,4548
𝑃 = 50,9092
Perubahan harga obligasi sebagai berikut:
𝑃16 − 𝑃15
=
𝑃15
(50,9092 − 54,1265)
=
54,1265
= −0,0594 ≈ −5,94%
c. What is the price of this bond if the required yield is 5%?
𝑛 = 2 × 10 = 20
0,05
𝑟= = 0,025
2
0,06
𝐶= × 100 = $3
2
𝑀 = 100
1
1− 𝑀
(1 + 𝑟)𝑛
𝑃 = 𝐶[ ]+
𝑟 (1 + 𝑟)𝑛

1
1− 100
(1 + 0,025)20
𝑃 = 3[ ]+
0,025 (1 + 0,025)20

𝑃 = 46,7675 + 61,0271
𝑃 = 107,7946
d. What is the price of this bond if the required yield increases from 5% to 6%, and by what
percentage did the price of this bond change?
Jika r 5% harga obligasi di $ 107,7946 perhitungan sama dengan poin c
Untuk r 6% karena sama dengan tingkat kupon maka akan sama di par yaitu 100
Perubahan harga obligasi sebagai berikut:
𝑃6 − 𝑃5
=
𝑃5
(100 − 107,7946)
=
107,7946
= −0,0723 ≈ −7,23%
e. From your answers to Question 9, parts b and d, what can you say about the relative price
volatility of a bond in high- compared with low interest-rate environments?
Dari perhitungan poin b dan d terkait perubahan harga dengan melakukan perubahan dalam
suku bunga, maka dapat disimpulkan bahwa suku bunga rendah akan memiliki volatilitas yang
besar karena penurunannya yang besar.

Chapter 3 No. 12
An investor is considering the purchase of a 20-year 7% coupon bond selling for $816 and a
par value of $1,000. The yield to maturity for this bond is 9%.
a. What would be the total future dollars if this investor invested $816 for 20 years earning 9%
compounded semiannually?
𝑃0 = $ 816
𝑛 = 2 × 20 = 40
9%
𝑟= = 4,5%
2
𝑃𝑛 = 𝑃0 (1 + 𝑟)𝑛
𝑃𝑛 = 816(1 + 0,045)40
𝑃𝑛 = 816(5,8164)
𝑃𝑛 = $4.746,18
b. What are the total coupon payments over the life of this bond?
7%
𝐶= × 1.000 = $35
2
𝑛 = 20 × 2 = 40
Total kupon yang didapat:
𝑇𝑜𝑡𝑎𝑙 = 𝑛 × 𝐶
𝑇𝑜𝑡𝑎𝑙 = 40 × 35
𝑇𝑜𝑡𝑎𝑙 = $1.400
c. What would be the total future dollars from the coupon payments and the repayment of
principal at the end of 20 years?
7%
𝐶= × 1.000 = $35
2
𝑛 = 2 × 20 = 40
9%
𝑟= = 4,5%
2
𝑀 = 1.000
(1 + 𝑟)𝑛 − 1
𝑃𝑛 = 𝐶 [ ]+𝑀
𝑟
(1 + 0,045)40 − 1
𝑃𝑛 = 35 [ ] + 1.000
0,045
𝑃𝑛 = 35[107,0303] + 1.000
𝑃𝑛 = 3.746,0605 + 1.000
𝑃𝑛 = $4.746,0605
d. For the bond to produce the same total future dollars as in part (a), how much must the
interest on interest be?
 7%
𝐶= × 1.000 = $35
2
𝑛 = 2 × 20 = 40
9%
𝑟= = 4,5%
2
(1 + 𝑟)𝑛 − 1
𝑖𝑛𝑡𝑒𝑟𝑠𝑡 𝑜𝑛 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 𝐶 [ ] − 𝑛𝐶
𝑟
(1 + 0,045)40 − 1
𝑖𝑛𝑡𝑒𝑟𝑠𝑡 𝑜𝑛 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 35 [ ] − 40 × 35
0,045
𝑖𝑛𝑡𝑒𝑟𝑠𝑡 𝑜𝑛 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 35[107,0303] − 1.400
𝑖𝑛𝑡𝑒𝑟𝑠𝑡 𝑜𝑛 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 3.746,0605 − 1.400
𝑖𝑛𝑡𝑒𝑟𝑠𝑡 𝑜𝑛 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = $2.346,0605
e. Calculate the interest on interest from the bond assuming that the semiannual coupon
payments can be reinvested at 4.5% every six months and demonstrate that the resulting amount
is the same as in part (d).
7%
𝐶= × 1.000 = $35
2
𝑛 = 2 × 20 = 40
𝑟 = 4,5%
(1 + 𝑟)𝑛 − 1
𝑖𝑛𝑡𝑒𝑟𝑠𝑡 𝑜𝑛 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 𝐶 [ ] − 𝑛𝐶
𝑟
(1 + 0,045)40 − 1
𝑖𝑛𝑡𝑒𝑟𝑠𝑡 𝑜𝑛 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 35 [ ] − 40 × 35
0,045
𝑖𝑛𝑡𝑒𝑟𝑠𝑡 𝑜𝑛 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 35[107,0303] − 1.400
𝑖𝑛𝑡𝑒𝑟𝑠𝑡 𝑜𝑛 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 3.746,0605 − 1.400
𝑖𝑛𝑡𝑒𝑟𝑠𝑡 𝑜𝑛 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = $2.346,0605
Hasil akhir tetap sama karena r dengan 9% setiap tahun dan pembagian kupon diberikan setiap
6 bulan sekali maka akan sama dengan 4,5% dengan pemberian setiap 6 bulan sekali.