Problem 10-3 A bond has a coupon rate of 11 percent and 5 years until maturity.
ID: 2779465 • Letter: P
Question
Problem 10-3
A bond has a coupon rate of 11 percent and 5 years until maturity. If the yield to maturity is 10.1 percent, what is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
A bond has a coupon rate of 11 percent and 5 years until maturity. If the yield to maturity is 10.1 percent, what is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Explanation / Answer
Statement showing Cash flows Particulars Time PVF @10.1% Amount PV Cash flows (Intt) 1.00 0.9083 110.00 99.91 Cash flows (Intt) 2.00 0.8249 110.00 90.74 Cash flows (Intt) 3.00 0.7493 110.00 82.42 Cash flows (Intt) 4.00 0.6805 110.00 74.86 Cash flows (Intt) 5.00 0.6181 110.00 67.99 Cash flows (Maturoty price) 5.00 0.6181 1,000.00 618.11 Bond Price 1,034.03
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.