Double the number of periods and cut the interest payment in half. In the above example, you'll have 10 six month periods and you'll receive $30 every six months in interest.
The coupon rate is the percentage of the par value that is paid each year in interest. The yield is the return that the bond pays that accounts for the coupons and the price paid for the bond.
How do I use this method to find the value of a bond semi-annually?
Double the number of periods and cut the interest payment in half. In the above example, you'll have 10 six month periods and you'll receive $30 every six months in interest.
Whats the difference for yield rate and coupon rate, good video by the way
The coupon rate is the percentage of the par value that is paid each year in interest. The yield is the return that the bond pays that accounts for the coupons and the price paid for the bond.
@@RonaldMoy so how would you calculate it
Thank you so much this was very helpful
Thanks for the upload
is this a lattice model
1:59 you should discount by the coupon rate
No, you should discount by the yield to maturity. The coupon rate doesn't change.