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The yield to maturity of a $1000 bond with a 7% coupon rate, semiannual coupons, and...

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Finance

The yield to maturity of a $1000 bond with a 7% coupon rate,semiannual coupons, and two years to maturity is 7.6% APR,compounded semiannually. What must its price be?

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4.0 Ratings (637 Votes)
Solution Its price must be 98906 The bond current price Working Notes Bond Price Periodic Coupon Payments x Cumulative PVF periodic YTM for t to tn PVF for tn periodic YTM x    See Answer
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The yield to maturity of a $1000 bond with a 7% coupon rate,semiannual coupons, and two years to maturity is 7.6% APR,compounded semiannually. What must its price be?

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