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Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of...

Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 6.75%, based on semiannual compounding. What is the bond's price?

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Expert Solution

The Bond's price is calculated using the PV function as follows:-

=PV(rate,nper,pmt,fv)

=PV(6.75%/2,10*2,6.25%/2*1000,1000)

=964.06

jeff jeffy answered 2 years ago
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