Question
In: Finance
Dufner Co. issued 13-year bonds one year ago at a coupon rate of 6.5 percent. The...
Dufner Co. issued 13-year bonds one year ago at a coupon rate of 6.5 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.4 percent, what is the current dollar price assuming a par value of $1,000?
Solutions
Expert Solution
M = $1000, n = 12 * 2 = 24
semi-annual periods, i = 5.4%/2 = 2.7% (semi-annually), C = 6.5% *
$1000/2 = $32.50 (semi-annually)
P = $568.62 + $527.61
P = $1,096.23
jeff jeffy answered 2 years agoRelated Solutions
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