Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

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Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have an

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Answer 1

Answer #1

Current price of a bond, is the sum of the PV of the maturity
value of the bond and the PV of periodic interest payments
when discounted at the YTM.
Here,
the maturity value is Euro 1,000 receivable at EOY 25 and
the 25 annual interest payments of Euro 63 constitute an annuity.
The discount rate is 7.4%.
Hence, price = 1000/1.074^25+63(1.074^25-1)/(0.0741.074^25) =	€ 876.30

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Answer 2

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