A 12-year bond has a 9 percent annual coupon, a yield to maturity of 9.0 percent, and a face value of $1,000. What is the price of the bond?

A bond with 10 years to maturity has a face value of $1,000. The bond can be called in four years for $1050. The bond pays a 6 percent semiannual coupon and the bond has a 2.6 percent nominal yield to maturity. What is the price of the bond today assuming that it will be called?

Answer rating: 100% (QA)

To calculate the price of the bond we need to use the present value formula which discounts the futu... View the full answer