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Example 3: Bond Pricing Input area: Settlement date 1/1/00 Maturity date 1/1/17 Coupon rate 0.00% Coupons...

Example 3: Bond Pricing
Input area:
Settlement date 1/1/00
Maturity date 1/1/17
Coupon rate 0.00%
Coupons per year                       2
Face value                   100
Yield to maturity 4.90%
Par value $         10,000
Output area:
Price
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Answer #1

To find the bond price, we need to put the following values in the financial calculator:

INPUT 17x2=34 4.9/2=2.45 0 10,000
TVM N I/Y PV PMT FV
OUTPUT -4,391.30

Hence, Bond Price = $4,391.30

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