Question
In: Finance
What is the current price of an Apple bond that has a 7.2%coupon, 15 years...
What is the current price of an Apple bond that has a 7.2% coupon, 15 years to maturity, a YTM of 6% and semiannual payments?
please need steps in excel format
Solutions
Expert Solution
Face Value of Bond = $1000
Semi-Annual Coupon Payment = $1000*12% = $120
No of years to maturity = 15 years*2 = 30 years
Semi-annual YTM = 6%/2 = 3%
Calculating the Price of Bond using the Excel "PV" function:-
SO, the current price of an Apple bond is $1117,60
Note- Shown in Yellow are formulas.
jeff jeffy answered 2 years agoRelated Solutions
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