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What is the price of a 10 year $1000 bond that pays 3% interest if the...

What is the price of a 10 year $1000 bond that pays 3% interest if the current market yield is 2%? Please resolve using the following format N, I, PV, PMT, FV.

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Answer #1

N = 10

I = 2

PMT = 1000 * 0.03 = 30

FV = 1000

CPT PV

PV = -1,089.82585006

The price of the bond = $1,089.82585006

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