What is the price of a 30 year bond with a $1000 par value? The bond has a 5% coupon rate, pays semi-annual coupons, and has a 8% yield to maturity.
A. $662.27
B. $1,461.17
C. $6,60.65
D. $1,321.30
What is the price of a 30 year bond with a $1000 par value
=(1000*5%/2)*((1-(1+(8%/2))^(-30*2))/(8%/2))+1000/(1+(8%/2))^(30*2)
=$660.65
so C will be the answer
the above will be the answer..
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