California Corporation offers 5 percent coupon bonds with semiannual payments and a yield to maturity of 5 percent. The bonds mature in 10 years. What is the market price per bond if the face value is $1,000?
Since the YTM is equal to coupon rate, market price of the bond is equal to its face value of $1,000.
Illustrated as follows, using PV function of Excel.
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