what is the price of a $1000 par value bond with a coupon rate of 6.9%(annual...

what is the price of a $1000 par value bond with a coupon rate of 6.9%(annual payments) that matures in 25 years, assuming that the bond's YTM is 4.57% p.a.?

Expert Solution

calculations-

Here,
Fv is the future value of bond
rate is the periodic interest rate
nper is no. of periods
pmt is the periodic payments
Pv is the present value of bond
type = 0 if the amount is paid at the end of the year ,1 if it is paid at the beginning.

As no method was mentioned I have solved the problem using excel function.

Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 3 years ago

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