Par Value = $1,000
Annual Coupon = $60
Annual YTM = 7%
Period = 3 years
Current Price = $60 + $60/1.07 + $60/1.07^2 + $60/1.07^3 +
$1,000/1.07^3
Current Price = $60 * 1.07 * (1 - (1/1.07)^4) / 0.07 + $1,000 /
1.07^3
Current Price = $60 * 3.624316 + $1,000 * 0.816298
Current Price = $1,033.76
15. A $1,000 bond will pay its annual interest of $60 tomorrow. The bonds mature in...
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