Great Wall Pizzeria issued 12-year bonds one year ago at a coupon rate of 6.9 pe

Question

Great Wall Pizzeria issued 12-year bonds one year ago at a coupon rate of 6.9 percent. If the YTM on these bonds is 9.1 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Great Wall Pizzeria issued 12-year bonds one year ago at a coupon rate of 6.9 percent. If the YTM on these bonds is 9.1 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

Assuming the coupon is payable annually and Face Value is $100 and is redeemable at par.

Price = P.V. of future payments
= 0.069*100*PVIFA(9.1%,11) + 100*PVIF(9.1%,11)
= $85.10

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