A $1,000 face value bond has a yield to maturity of 12.72%. The bond has a...

A $1,000 face value bond has a yield to maturity of 12.72%. The bond has a coupon rate of 13% and pays semiannual coupons/ The bond matures in 7 years. What is the price of the bond?

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Expert Solution

Calculating Price of Bond,

Using TVM Calculation,

PV = [FV = 1,000, PMT = 65, N = 14, I = 0.1272/2]

PV = $1,012.73

Bond Price = $1,012.73

jeff jeffy answered 2 years ago

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