What is the price of a $100, 12 year, 6%, semiannual bond with a YTM of...

What is the price of a $100, 12 year, 6%, semiannual bond with a YTM of 6.5%?

		$104.23
		$95.88
		$95.92
		$100.00

Expert Solution

M = $100, n = 12 * 2 = 24 semi-annual periods, C = 6% * $100/2 = $3 semi-annually, i = 6.5%/2 = 3.25% (semi-annually)

P = $49.465 + $46.413

P = $95.88

jeff jeffy answered 2 years ago

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