Question

Price the bonds from the following table with annual coupon payments.

Par Value	Coupon Rate		Years to Maturity	Yield to Maturity		Price
​$1,000	10%		10	9%	​
​$1,000	6%		30	6%		​?
​$5,000	8​%		25	10​%		​?
​$5,000	12​%		20	5%		​?

Answer 1

1)

price=PMT*((1-(1+r)^(-n))/r)+FV/(1+r)^n

=(1000*10%)*((1-(1+9%)^(-10))/9%)+1000/(1+9%)^10

=1064.18

2)

price=(1000*6%)*((1-(1+6%)^(-30))/6%)+1000/(1+6%)^30=1000.00

3)

price=(5000*8%)*((1-(1+10%)^(-25))/10%)+5000/(1+10%)^25=4092.30

4)

price=(5000*12%)*((1-(1+5%)^(-20))/5%)+5000/(1+5%)^20=9361.77

the above is answer..