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A company’s bonds have a 15-year maturity, a 6% coupon rate paid semi-annually, and a par value...

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Finance

Acompany’s bonds have a 15-year maturity, a 6% coupon rate paidsemi-annually, and a par value of $1000. The nominal yield isquoted as 6% in the financial press. What is the bond’sprice?

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4.3 Ratings (637 Votes)
Price of the Bond The Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the face Value Face Value of the bond 1000 Semiannual Coupon Amount 30 1000 x 600 x Semiannual    See Answer
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Acompany’s bonds have a 15-year maturity, a 6% coupon rate paidsemi-annually, and a par value of $1000. The nominal yield isquoted as 6% in the financial press. What is the bond’sprice?

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