Question

Par Value	Coupon Rate	Years to Maturity	Yield to Maturity	Price
$1,000.00	5%	15	10%	?
$1,000.00	12%	30	11%	?
$5,000.00	7%	5	12%	?
$1,000.00	10%	30	8%	?

Find the price for the bond in the following​ table:  ​(Round to the nearest​ cent.)

Answer 1

K = N

Bond Price =∑ [(Annual Coupon)/(1 + YTM)^k]     +   Par value/(1 + YTM)^N

k=1

K =15

Bond Price =∑ [(5*1000/100)/(1 + 10/100)^k]     +   1000/(1 + 10/100)^15

k=1

Bond Price = 619.7

K = N

Bond Price =∑ [(Annual Coupon)/(1 + YTM)^k]     +   Par value/(1 + YTM)^N

k=1

K =30

Bond Price =∑ [(12*1000/100)/(1 + 11/100)^k]     +   1000/(1 + 11/100)^30

k=1

Bond Price = 1086.94

K = N

Bond Price =∑ [(Annual Coupon)/(1 + YTM)^k]     +   Par value/(1 + YTM)^N

k=1

K =5

Bond Price =∑ [(7*5000/100)/(1 + 12/100)^k]     +   5000/(1 + 12/100)^5

k=1

Bond Price = 4098.81

K = N

Bond Price =∑ [(Annual Coupon)/(1 + YTM)^k]     +   Par value/(1 + YTM)^N

k=1

K =30

Bond Price =∑ [(10*1000/100)/(1 + 8/100)^k]     +   1000/(1 + 8/100)^30

k=1

Bond Price = 1225.16