4.XYZ Corporation issued 10-year bonds a year ago at a coupon rate of 10 percent. The...

4.4 Ratings (647 Votes)

Statement showing price of bond:
*( In case of semi annual bond, yield= 7/2=3.5%, Coupon rate=10/2=5%, Years=102=20**
Particulars	Time	PVf @3.5%	Amount	PV
Cash Flows (Interest)	1.00	0.9662	50.00	48.31
Cash Flows (Interest)	2.00	0.9335	50.00	46.68
Cash Flows (Interest)	3.00	0.9019	50.00	45.10
Cash Flows (Interest)	4.00	0.8714	50.00	43.57
Cash Flows (Interest)	5.00	0.8420	50.00	42.10
Cash Flows (Interest)	6.00	0.8135	50.00	40.68
Cash Flows (Interest)	7.00	0.7860	50.00	39.30
Cash Flows (Interest)	8.00	0.7594	50.00	37.97
Cash Flows (Interest)	9.00	0.7337	50.00	36.69
Cash Flows (Interest)	10.00	0.7089	50.00	35.45
Cash Flows (Interest)	11.00	0.6849	50.00	34.25
Cash Flows (Interest)	12.00	0.6618	50.00	33.09
Cash Flows (Interest)	13.00	0.6394	50.00	31.97
Cash Flows (Interest)	14.00	0.6178	50.00	30.89
Cash Flows (Interest)	15.00	0.5969	50.00	29.84
Cash Flows (Interest)	16.00	0.5767	50.00	28.84
Cash Flows (Interest)	17.00	0.5572	50.00	27.86
Cash Flows (Interest)	18.00	0.5384	50.00	26.92
Cash Flows (Interest)	19.00	0.5202	50.00	26.01
Cash Flows (Interest)	20.00	0.5026	50.00	25.13
Cash flows (Maturity Amount)	20.00	0.5026	1,000.00	502.60
Fair Price				1,213.22
Price of Bond is $1213.22

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