A bond with a face value of $1000 is currently yields a 6% coupon paid semiannua

Question

A bond with a face value of $1000 is currently yields a 6% coupon paid semiannually. If this bond matures 5 years from today , what is the most I should currently for this bond if my research has indicated that similar bonds are yielding at 5% ?
A) 1043.76 B) 1,123.09 C) 896.71 D) 1058.04 E) 1034.48 A bond with a face value of $1000 is currently yields a 6% coupon paid semiannually. If this bond matures 5 years from today , what is the most I should currently for this bond if my research has indicated that similar bonds are yielding at 5% ?
A) 1043.76 B) 1,123.09 C) 896.71 D) 1058.04 E) 1034.48
A) 1043.76 B) 1,123.09 C) 896.71 D) 1058.04 E) 1034.48 A) 1043.76 B) 1,123.09 C) 896.71 D) 1058.04 E) 1034.48

Explanation / Answer

what is the most I should currently for this bond

=(1000*6%/2)*((1-(1+(5%/2))^(-5*2))/(5%/2))+1000/(1+(5%/2))^(5*2)

=1043.76

the above should be the answer

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