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What must be the price of a $ 5 comma 000 bond with a 6.9​% coupon​...

What must be the price of a $ 5 comma 000 bond with a 6.9​% coupon​ rate, semiannual​ coupons, and two years to maturity if it has a yield to maturity of 11​% ​APR?

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Answer #1

Price of the bond is calculated using the PV function:-

=PV(rate,nper,pmt,fv)

=PV(11%/2,2*2,6.9%/2*5000,5000)

=4640.72

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