Weismann Co. issued 11-year bonds a year ago at a coupon rate of 7 percent. The...

Weismann Co. issued 11-year bonds a year ago at a coupon rate of 7 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6 percent, what is the current bond price?

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Expert Solution

M= $1000, n = 10 * 2 = 20 semi-annual periods, C = 7% * $1000/2 = $35 (semi-annually), i = 6%/2 = 3% (semi-annually)

P = $520.71 + $553.68

P = $1,074.39

jeff jeffy answered 2 years ago

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