Question
In: Finance
If a semi-annual bond has par-value is $100, 5% coupon and 8years of remaining maturity,...
If a semi-annual bond has par-value is $100, 5% coupon and 8 years of remaining maturity, what would be the market price if yield is 6%
100, 106.78, 93.71, or none of the above
Solutions
Expert Solution
We will uss the BA 2 Plus financial calculator to find the market price. Please press the following keys on your calculator-
2ND FV
16 N (8X2)
100 FV
3 I/Y (6/2)
2.5 PMT (100X5%/2)
CPT PV
PV = -93.71 (Negative as it is an outflow)
Answer = $93.71
jeff jeffy answered 2 years agoRelated Solutions
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