Question
In: Finance
Weismann Co. issued 17-year bonds a year ago at a coupon rate of 11 percent. The...
Weismann Co. issued 17-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 8 percent, what is the current bond price? Multiple Choice • $586.82 • $1,278.10 • $1,718.94 • $1,268.10 • $1,187.49
Solutions
Expert Solution
The current bond price is calculated using the PV function:-
=PV(rate,nper,pmt,fv0)
=PV(8%/2,16*2,11%/2*1000,1000)
=1268.10
jeff jeffy answered 2 years agoRelated Solutions
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