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?

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 2 years ago

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A bond with a face value of $1000 will pay it's next semi-annual $50 coupon payment...

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