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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 ago
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