What is the price for a $1000 par, 10 year, 8% coupon bond with semi-annual payments...
What is the price for a $1000 par, 10 year, 8% coupon bond with semi-annual payments and a 7% yield to maturity? I would like a step by step on how to solve or step by step excel steps.
Homework Answers
Price = $1071.06
Use the following in excel:
| NPER | 20 | [10 years *2] |
| FV | 1000 | |
| PMT | 40.0 | [1000*8%*1/2] |
| Rate | 3.50% | [7%/2] |
| PV | $1,071.06 | [-pv(rate,nper,pmt,fv,0) |
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