Question: Clear BIU Paste . EEG Merge - - E15 F G Join selected cells. 1 Homework 6 - Bond Valuation 2 13 4 Suppose Hyatt

Clear BIU Paste . EEG Merge - - E15 F G Join selected cells. 1 Homework 6 - Bond Valuation 2 13 4 Suppose Hyatt issues a bond with a par value of $1,000, 25 years to maturity and a coupon rate of 8% paid annually. If YTM is 6.4%, what is the current price of the bond? 6 8 9 10 Bond Price = PV(coupon) + PV(face value) - couponPVAIF + $1,000 PVIE PVAIF (6.4%, 25, -1) = 12.3116 PVIF (6.4%, 25, 0,-1) = 0.2121 Each coupon = $1,000 8% - $80 12 13 Bond Price coupon . PVAIF + $1,000 "PVIF 15 16 17 18 19 20 22 NNNNNNN

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