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Question 12 5 pts Moody Corporations bonds have a 15-y naturity, a 7.25% coupon paid semiannually, and a par value of $1,000
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Answer #1

Bond Price = PV of CFs from it.

Period CF PVF @2.75% Disc CF
1 $      36.25           0.9732 $      35.28
2 $      36.25           0.9472 $      34.34
3 $      36.25           0.9218 $      33.42
4 $      36.25           0.8972 $      32.52
5 $      36.25           0.8732 $      31.65
6 $      36.25           0.8498 $      30.80
7 $      36.25           0.8270 $      29.98
8 $      36.25           0.8049 $      29.18
9 $      36.25           0.7834 $      28.40
10 $      36.25           0.7624 $      27.64
11 $      36.25           0.7420 $      26.90
12 $      36.25           0.7221 $      26.18
13 $      36.25           0.7028 $      25.48
14 $      36.25           0.6840 $      24.79
15 $      36.25           0.6657 $      24.13
16 $      36.25           0.6479 $      23.49
17 $      36.25           0.6305 $      22.86
18 $      36.25           0.6137 $      22.25
19 $      36.25           0.5972 $      21.65
20 $      36.25           0.5813 $      21.07
21 $      36.25           0.5657 $      20.51
22 $      36.25           0.5506 $      19.96
23 $      36.25           0.5358 $      19.42
24 $      36.25           0.5215 $      18.90
25 $      36.25           0.5075 $      18.40
26 $      36.25           0.4939 $      17.91
27 $      36.25           0.4807 $      17.43
28 $      36.25           0.4679 $      16.96
29 $      36.25           0.4553 $      16.51
30 $      36.25           0.4431 $      16.06
30 $ 1,000.00           0.4431 $    443.14
Bond Price $ 1,177.18

Bond Price is $ 1,177.18

Pls comment, if any further assistance is required.

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