A bond offers a coupon rate of 3%, paid annually, and has a maturity of 19...

A bond offers a coupon rate of 3%, paid annually, and has a maturity of 19 years. Face value is $1,000. If the current market yield is 11% (discount rate), what should be the price of this bond?

Enter your answer in dollars, without the dollar sign ('$'), and rounded to the nearest cent (2 decimals).

Expert Solution

Solution :

The Price of the bond is = $ 372.86

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 2 years ago

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