The value of a 1.5-year, 6 percent semiannual coupon, $100 par value bond

[marshmallow]

Hi

How is this question solved?

The value of a 1.5-year, 6 percent semiannual coupon, $100 par value bond is closest to:

Answer is 104.

Explanation
bond price=$3(1+0.02502)1+$3(1+0.03002)2+$103(1+0.03262)3=$104.00bond price=$3(1+0.02502)1+$3(1+0.03002)2+$103(1+0.03262)3=$104.00


Spot rates are not given. So, where are the rates in denominator coming from?

 

[Lu Shu Kai FRM]

Hi @marshmallow ,

That seems unlikely, do you mind taking a screenshot of the question?

 

[David Harper CFA FRM]

Agreed, if given the maturity (1.5 years), coupon rate (6%), face value ($100.00), you only have 3 of 4 inputs and not enough information to price the bond. You need the yield (single factor) or the spot rates (or the forward rates).