A firm issued a 30-year bond 5 years ago. It has a 7% coupon rate and...

A firm issued a 30-year bond 5 years ago. It has a 7% coupon rate and will pay semiannual coupons. If the bond has a face value of $1,000 and a 4.5% yield to maturity, what should be the price of the bond today?

Group of answer choices

$1,270.57

$1,372.93

$1,370.71

$1,374.11

Solutions

Expert Solution

calculations-

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 1 year ago

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