In: Finance
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. |
$912.44 |
Ans is c .$ 911.67
Calculation-
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