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A bond has a coupon rate of 4.3% and pays coupons annually. The bond matures in...

A bond has a coupon rate of 4.3% and pays coupons annually. The bond matures in 29 years and the yield to maturity on similar bonds is 3.7%. What is the price of the bond?

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Answer #1

Face Value = $1,000

Annual Coupon Payment = $1,000*4.3%

=$43

No of years to maturity(n) = 29 years

YTM = 3.7%

Calculating the Price of the Bond:-

Price = $756.95 + $348.67

Price = $1105.62

So, The Price of Bond is $1105.62

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