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Help with IP1 Question 3

Discussion in 'Financial Planning Study Group' started by Scotty1975, 3rd Mar, 2010.

  1. Scotty1975

    Scotty1975 Member

    2nd Mar, 2010
    Adelaide, SA
    Hello all,

    What a great forum.....

    Im just after people's feedback and help in relation to the following question in my Investment Planning 1 assignment.


    Calculate the purchase price of a 10-year government bond parcel with two full years remaining in its term. The bond’s yield rate is 8.95% p.a., paid as a half-yearly coupon, and assume that the prevailing market interest rate is 7.50% p.a. Use a parcel price of $100.

    I got $102.64 for my answer. Does this seem right....

    Has anyone else got the answer to this.

    Any help would be appreciated.