Question: How to get the answer by using Calculator please explain C = Coupun = 50$ i = YTM = 7 % N= years = 7
C = Coupun = 50$ i = YTM = 7 % N= years = 7 M=Maturity value or Face or Par value of a Bond = 1000$ We need to discount the coupon for all years with their respective time period and then we need to discount the Face or Par value also, By doing this we will get the price of a Bond. We can the detailed calculations in Image attacted. Calculate Bond price with 7 % YTM 46.72897 436719 33489 584763564931 33.31713 658387229 Face value o Par valve Years Bond Price 892.214 Calculate Bond price with 5 YTM 4761905 4553474390943123012 Coupon YTM Face value or Par value Years Bond Price 1000 Calculate Bond price with 4.25 X YTM 47.96163 45.00636 4130 42.3317 40.60595 58.95055 784615462 Coupon YTM Face value o Par value 2000 Bond Price 10446 So Bond price with YTM 7% is $ 892.214 Bond price with YTM 5% is $ 1000 Bond price with YTM 4.25% is $ 1044.6 Please provide the feedback
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
