In: Finance
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?
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