A bond with 10 years to maturity, has a semiannual coupon payment of $300, and a...
A bond with 10 years to maturity, has a semiannual coupon payment of $300, and a current price of $7,231.62, If the yield to maturity is 6%, what is the price of the bond in percentage of par?
Homework Answers
Value of BOnd = 
r = 0.06 / 2 = 0.03
n = 10 yearas * 2 = 20
7231.62 = 
7231.62 = 4463.2424589 + Maturity Value * 0.55367575411
Maturity Value = (7231.62 - 4463.2424589) / 0.55367575411
Maturity Value = 5000
Value of Bond in % = 7231.62 / 5000 = 144.63%
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