Question

Sqeekers Co. issued 15-year bonds a year ago at a coupon rate of 4.1 percent. The bonds make semi-annual payments and have a standard par value of $1,000. The YTM on these bonds is 4.5 percent.

What is the current price of the bond?

Settlement date (MM/DD/YYYY)

Maturity date (MM/DD/YYYY)

Years to Maturity (# of years)

Coupon rate (%)

Coupons per year (# per year)

Face value (% of par)

Yield to maturity (%)

Par value ($)

Answer 1

Years to Maturity	14
Frequency of Coupon	2
Period	28	=14*2
Face Value	1000
Coupon Rate	4.10%
Coupon Amount	20.5	=1000*4.1%/2
YTM	4.50%
Current Price	$958.78	=-PV(4.5%/2,28,20.5,1000,0)

Current Price of the bond is = $958.78