Question

In: Finance

Kathmandu Inc. issued bonds with 18-year maturity. The issue has a coupon rate of 8% p.a....

Kathmandu Inc. issued bonds with 18-year maturity. The issue has a coupon rate of 8% p.a. (coupons are paid semi-annually). If the YTM on this issue is currently at 9% p.a. Calculate the price of a bond assuming a face value of $1,000. Please round to two decimal places.

a.

$1,093.72

b.

$1,066.34

c.

$911.67

d.

$911.28

e.

$912.44

Solutions

Expert Solution

Ans is c .$ 911.67

Calculation-

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