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A 30 year bond that was issued exactly 12 years ago has a stated interest rate...

A 30 year bond that was issued exactly 12 years ago has a stated interest rate of 5.5%. Interest is paid twice per year. What is the price of the bond if the YTM is now 5.875%? Assume that you are the seller. Format your answer as currency, and show the cents. Show step by step in Excel

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Answer #1

ASSUMING PAR OF 1000

Using Excel enter the below formula in any cell
=PV(5.875%/2,2*18,-5.5%*1000/2,-1000)
=958.68009

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