Bond X is a ten-year semi-annual coupon bond, which was issued at par 7 years ago. The yield to maturity 7 years ago was 6%. How much does Bond X worth currently when the yield to maturity is 8% now. Face value = $1000. What is  the current price of the bond  ( retain at least 4 decimals in your calculations and at least 2 decimals in your final answer.)

Answer rating: 100% (QA)

To calculate the current price of Bond X we need to find the present value of the future cash flows ... View the full answer