Bond Price = PV of CFs from it.
Period | CF | [email protected]% | Disc CF |
1 | $ 51.00 | 0.9556 | $ 48.73 |
2 | $ 51.00 | 0.9131 | $ 46.57 |
3 | $ 51.00 | 0.8725 | $ 44.50 |
4 | $ 51.00 | 0.8338 | $ 42.52 |
5 | $ 51.00 | 0.7967 | $ 40.63 |
6 | $ 51.00 | 0.7613 | $ 38.83 |
7 | $ 51.00 | 0.7275 | $ 37.10 |
8 | $ 51.00 | 0.6952 | $ 35.45 |
9 | $ 51.00 | 0.6643 | $ 33.88 |
10 | $ 51.00 | 0.6348 | $ 32.37 |
11 | $ 51.00 | 0.6066 | $ 30.93 |
12 | $ 51.00 | 0.5796 | $ 29.56 |
13 | $ 51.00 | 0.5538 | $ 28.25 |
14 | $ 51.00 | 0.5292 | $ 26.99 |
15 | $ 51.00 | 0.5057 | $ 25.79 |
16 | $ 51.00 | 0.4833 | $ 24.65 |
17 | $ 51.00 | 0.4618 | $ 23.55 |
18 | $ 51.00 | 0.4413 | $ 22.50 |
19 | $ 51.00 | 0.4217 | $ 21.50 |
20 | $ 51.00 | 0.4029 | $ 20.55 |
21 | $ 51.00 | 0.3850 | $ 19.64 |
22 | $ 51.00 | 0.3679 | $ 18.76 |
23 | $ 51.00 | 0.3516 | $ 17.93 |
24 | $ 51.00 | 0.3359 | $ 17.13 |
25 | $ 51.00 | 0.3210 | $ 16.37 |
26 | $ 51.00 | 0.3067 | $ 15.64 |
27 | $ 51.00 | 0.2931 | $ 14.95 |
28 | $ 51.00 | 0.2801 | $ 14.28 |
29 | $ 51.00 | 0.2676 | $ 13.65 |
30 | $ 51.00 | 0.2558 | $ 13.04 |
31 | $ 51.00 | 0.2444 | $ 12.46 |
32 | $ 51.00 | 0.2335 | $ 11.91 |
33 | $ 51.00 | 0.2232 | $ 11.38 |
34 | $ 51.00 | 0.2132 | $ 10.88 |
35 | $ 51.00 | 0.2038 | $ 10.39 |
36 | $ 51.00 | 0.1947 | $ 9.93 |
37 | $ 51.00 | 0.1861 | $ 9.49 |
38 | $ 51.00 | 0.1778 | $ 9.07 |
39 | $ 51.00 | 0.1699 | $ 8.66 |
40 | $ 51.00 | 0.1623 | $ 8.28 |
41 | $ 51.00 | 0.1551 | $ 7.91 |
42 | $ 51.00 | 0.1482 | $ 7.56 |
43 | $ 51.00 | 0.1416 | $ 7.22 |
44 | $ 51.00 | 0.1354 | $ 6.90 |
45 | $ 51.00 | 0.1293 | $ 6.60 |
46 | $ 51.00 | 0.1236 | $ 6.30 |
46 | $ 1,000.00 | 0.1236 | $ 123.59 |
Bond Price | $ 1,084.81 |
OPtion B is correct.
Pls comment, if any further assistance is required.
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