Question

A 17-year, $1000 face value bond makes annual payments and has a coupon rate of 16 percent. If the current yield on the bond is 15 percent, what is the bonds price? Enter your answer rounded to two decimal places.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Current yield = Annual coupon payments÷Bond price

15% = $160/Bond price

Bond price = $1,066.67

Hence, bond’s price is $1,066.67

Add a comment
Know the answer?
Add Answer to:
A 17-year, $1000 face value bond makes annual payments and has a coupon rate of 16...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT