Question
In: Finance
A bond with a face value of $1000 will pay it's next semi-annual $50 coupon payment...
A bond with a face value of $1000 will pay it's next semi-annual $50 coupon payment in exactly 6-months. What is the price of the bond if it matures in 6 years and the required yield-to-maturity is 14% APR compounded semi-annually?
Solutions
Expert Solution
| Face value | $ 1,000.00 |
| Coupon payment | $ 50.00 |
| Number of coupon payment in a year | 2 |
| Yield to maturity | 14% |
| Years to maturity | 6 |
| Price of bond | $ 841.15 |
Excel formula:
If you need the formula method, let me know in the comments.
jeff jeffy answered 1 year agoRelated Solutions
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