waldziuchna

beatthecfa Wrote:
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> OK this is the most frustrating this about this
> forum. I know you guys are trying to help, but
> you're not helping when your advice is incorrect.
>
> US bonds make payments semiannually.
>
> FV = -$100
> PMT = -$2.50 (5/2)
> I/Y = 2.625 (5.25/2)
> N = 4 (2 * 2)
> CPT PV
>
> The books is correct. You guys are assuming annual
> coupon payments

totally forgot about it - I didn't do valuation reading yet in the CFAI textbook .. I based my response on my previous studies in school where NOT ALL bonds are based on semi-annual payment and the question usually used to state that payments are semiannual .. That's why it didnt cross my mind .. Sorry for the mistake

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Omar A. Al Ismail