Part B M&B

CW 1

1 coupon 6
time in years 1
interest per frequency given 1.05
interest per year 1.05
interest per current time in years 1.05
coupon/interest per current time in years 5.714285714
Final price of Bond
Final price of Bond in £

2 coupon 20
time in years 0.5
interest per frequency given 1.03
interest per year 1.12550881
interest per current time in years 1.0609
coupon/interest per current time in years 18.85191818
Final price of Bond
Final price of Bond in £

3 coupon 0.75
time in years 0.25
interest per frequency given 1.02
interest per year 1.268241795
interest per current time in years 1.061208
coupon/interest per current time in years 0.706741751
Final price of Bond
Final price of Bond in £

4 coupon 2
time in years 0.5
interest per frequency given 1.03
interest per year 1.425760887
interest per current time in years 1.194052297
coupon/interest per current time in years 1.674968513
Final price of Bond
Final price of Bond in £
 6 106
2 3
1.05 1.05
1.05 1.05
1.1025 1.157625
5.442176871 91.56678544
102.723248
£102.72

20 20 20 20 20 20 1020
1 1.5 2 2.5 3 3.5 4
1.03 1.03 1.03 1.03 1.03 1.03 1.03
1.12550881 1.12550881 1.12550881 1.12550881 1.12550881 1.12550881 1.12550881
1.12550881 1.194052297 1.266770081 1.343916379 1.425760887 1.512589725 1.604706439
17.76974096 16.74968513 15.78818469 14.8818783 14.0275976 13.22235612 635.630278
746.921639
£746.92

0.75 0.75 0.75 0.75 0.75 0.75 100.75

0.5 0.75 1 1.25 1.5 1.75 2
1.02 1.02 1.02 1.02 1.02 1.02 1.02
1.268241795 1.268241795 1.268241795 1.268241795 1.268241795 1.268241795 1.268241795
1.126162419 1.195092569 1.268241795 1.345868338 1.428246248 1.515666344 1.608437249
0.665978537 0.627566449 0.591369882 0.557261047 0.525119531 0.494831863 62.63843991
66.80730897
£66.81

2 2 2 2 2 2 2
1 1.5 2 2.5 3 3.5 4
1.03 1.03 1.03 1.03 1.03 1.03 1.03
1.425760887 1.425760887 1.425760887 1.425760887 1.425760887 1.425760887 1.425760887
1.425760887 1.702433061 2.032794106 2.427262471 2.898278328 3.460695894 4.132251879
1.40275976 1.174789215 0.983867473 0.823973519 0.69006485 0.577918448 0.483997602
 2 102
4.5 5
1.03 1.03
1.425760887 1.425760887
4.934124846 5.891603104
0.405340372 17.31277518
25.53045493
£25.53