Question

Consider a ten-year, $1000 bond with a 6% coupon rate and annual coupons is trading with a YTM of 6%. Its bond price is $____

Answer 1

Interest= 1000*6%=60

S.No.	Interest	Present value @6%	PV amount
1.	60	0.9434	56.604
2.	60	0.8900	53.40
3.	60	0.8396	50.376
4.	60	0.7921	47.526
5.	60	0.7473	44.838
6.	60	0.7050	42.30
7.	60	0.6651	39.906
8.	60	0.6274	37.644
9.	60	0.5919	35.514
10.	1060(1000+60)	0.5584	591.904
	Total		1000.012

So, ther price of the bond is 1000.012