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auzriannamarie
26.02.2021 •
Business
A bond that pays interest semiannually has a coupon rate of 5.08 percent and a current yield of 5.37 percent. The par value is $1,000. What is the bond's price
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Ответ:
$997
Explanation:
The price of the Bond is its Present Value. thus we need to discount the future cash flows (payments and capital repayments) to find the price as follows.
Note : I am using a financial calculator here
FV = $1,000
P/Yr = 2
N = 1 x 2 = 2
PMT = ($1,000 x 5.08 %) ÷ 2 = $25.40
YTM = 5.37 %
PV = ?
Conclusion
Assuming the Bond Matures in 1 year, the bond's price is $997
Ответ:
Explanation:
Huh?