Question

2.) What must be the price of a $ 2 ,000 bond with a 5.6​% coupon​ rate, annual​ coupons, and 20 years to maturity if YTM is 9.2 % ​APR?

3.) An investor holds a Ford bond with a face value of ​$1000​, a coupon rate of 4​%, and semiannual payments that matures on​ 01/15/2029. How much will the investor receive on​ 01/15/2029?

Answer 1

2)

Function Arguments ? XD PV 9.2% Rate Nper 1 = 0.092 | = 20 1 = 112 1 = 2000 Pmt 112 Fv 2000 Type o = -1352.005823 Returns the present value of an investment: the total amount that a series of future payments is worth now. Type is a logical value: payment at the beginning of the period = 1; payment at = 0 or omitted. Formula result = $1,352.01 Help on this function OK Cancel

Hence, Bond price is $1,352.01

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