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issued 11yr bonds a year ago at a coupon rate of 6...

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issued 11yr bonds a year ago at a coupon rate of 6.9 %. The bonds make semiannual payments. If the YTM on these bonds is 7.4% what is the current bond price.,The answer to the problem is a little different then yours can look at the info below and let me know: Thank you To find the price of this bond, we need to realize that the maturity of the bond is 10 years. The bond was issued one year ago, with 11 years to maturity, so there are 10 years left on the bond. Also, the coupons are semiannual, so we need to use the semiannual interest rate and the number of semiannual periods. The price of the bond is: P = $34.50(PVIFA3.7%,20) + $1,000(PVIF3.7%,20) = $965.10

 

Paper#8782 | Written in 18-Jul-2015

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