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You are eyeing an investment in a corporate bond which has a YTM of 12.00%, and a stated rate of interest of 8.00% with...

You are eyeing an investment in a corporate bond which has a YTM of 12.00%, and a stated rate of interest of 8.00% with a maturity of 5 years. What is the price of this bond? a. $855.81 b. $711.62 c. $1,993.04 d. $852.80

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Answer #1

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

=PV(rate,nper,pmt,fv)

=PV(12%,5,8%*1000,1000)

=855.81

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