Question

ABC Inc bonds have a face value of $1,000, a coupon rate of 7.2 percent, semiannual...

ABC Inc bonds have a face value of $1,000, a coupon rate of 7.2 percent, semiannual interest payments, and mature in 15 years. What is the current price of these bonds if the yield to maturity is 7.2 percent?

$1,020.26

$1,012.78

$988.39

$1,010.68

$1,000.00
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Homework Answers

Answer #2

Solution:-

Nper = 15 year * 2 = 30

PMT =

PMT = $36

Rate =

Rate = 3.60%

FV = $1,000

To Calculate Current Price of Bond-

Current Price of Bond is $1,000

The Correct Answer is point E i.e. $1,000

If you have any query related to question then feel free to ask me in a comment.Thanks. Please rate.

answered by: anonymous
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