Current Price of the Bond
Variables |
Financial Calculator Keys |
Figures |
Par Value/Face Value of the Bond [$1.000] |
FV |
1,000 |
Coupon Amount [$1,000 x 7.00%] |
PMT |
70 |
Market Interest Rate or Yield to maturity on the Bond [6.69%] |
1/Y |
6.69 |
Maturity Period/Time to Maturity [3 Years] |
N |
3 |
Bond Price |
PV |
? |
Here, we need to set the above key variables into the financial calculator to find out the Price of the Bond. After entering the above keys in the financial calculator, we get the Price of the Bond (PV) = $1,008.18.
“Hence, the Current Price of the Bond will be $1,008.18”
Question 15 1 pts A $1,000 face value bond currently has a yield to maturity of...
Question 15 1 pts A $1,000 face value bond currently has a yield to maturity of 6.69%. The bond matures in three years and pays interest annually. The coupon rate of the bond is 7.00%. What is the current price of this bond? $823.43 $1,008.18 $1,000.00 $991.86
A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond matures in 3 years and pays interest annually. The coupon rate is 7 percent. What is the current price of this bond?
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