Find the price of a 10% coupon bond with a face value of $1000, a 12.25%...
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Find the price of a 10% coupon bond with a face value of $1000, a 12.25% yield to maturity, and eight years to maturity. Solution The price of the bond is $889.20. To solve using a financial calculator: n = years to maturity = 8 FV = face value of the bond (F) = 1,000 i annual interest rate = 12.25% PMT= yearly coupon payments (C) = 100 Then push the PV button price of the bond $889.20. Alternatively, you could solve for the yield to maturity given the bond price by putting in $889.20 for PV and pushing the i button to get a yield to maturity of 12.25%. You try it... Find the price of a 2.50% coupon bond with a face value of $8000, a 10.00% yield to maturity, and 5 years to maturity. PV = Price of the bond = $(Round your response to two decimal places.) Find the price of a 10% coupon bond with a face value of $1000, a 12.25% yield to maturity, and eight years to maturity. Solution The price of the bond is $889.20. To solve using a financial calculator: n = years to maturity = 8 FV = face value of the bond (F) = 1,000 i annual interest rate = 12.25% PMT= yearly coupon payments (C) = 100 Then push the PV button price of the bond $889.20. Alternatively, you could solve for the yield to maturity given the bond price by putting in $889.20 for PV and pushing the i button to get a yield to maturity of 12.25%. You try it... Find the price of a 2.50% coupon bond with a face value of $8000, a 10.00% yield to maturity, and 5 years to maturity. PV = Price of the bond = $(Round your response to two decimal places.)
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Solution n Years to maturity 5 FV Face Value of Bond 80... View the full answer
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