In: Finance
Use the bond term's below to answer the question
Maturity 7 years
Coupon Rate 4%
Face value $1,000
Annual Coupons
YTM 3% (interest rate)
Assuming the YTM remains constant throughout the bond's life, what
is the bond's price in year 4?
A. $1,028.29
B. $1,083.55
C. $1,008.12
D. $1,062.30
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As nothing was mentioned excel is used. If you need with FINANCIAL formula, let me know, will do that also. Thank you.
ANSWER : A : 1028.29