Question: please help me with the formula for calculating the purchase price of the first bond, how can we get 2164.54 with a 6.5% yield? Thank
A $2000, 80% bond redeemable at par in seven years bears coupons payable annually Compute the premium or discount and the purchase price if the yield, compounded annually, is 6,5%, 75%, and 8.5% Set the payment key (commonly PMT) to 160. This is a par value bond At the time of the bond's last payment, it will also pay out its face value of $2000. This means that at the end of the seven years, the bond will have a value of $2000 The future value (commonly FV) on the calculator should be set to 2000 (Do not include the $ symbol in your answer.) This bond pays its coupons annually, and has a seven year maturity. The number of periods (commonly N) on the calculator should be set to 7. Now calculate the purchase prices of the three different bonds by changing their interest rates (commonly 1/Y). and then computing their present values (commonly PV). The first bond has a yield of 6.5% and a purchase price (PV) of $ 2164.54 (Round to the nearest cent.) The second bond has a yield of 7.5% and a purchase price (PV) of $ 2052 97" (Round to the nearest cent.) The third bond has a yield of 8.5% and a purchase price (PV) of $ 1948.81 (Round to the nearest cent) A bond that has a purchase price above its face value is said to be bought at a premium, while a bond that has a
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