John Deere has an 7% coupon bond outstanding. It has a $1,000 face value, matures in exactly 14 years (28 semi-annual pe...

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John Deere has an 7% coupon bond outstanding. It has a $1,000 face value, matures in exactly 14 years (28 semi-annual pe...

John Deere has an 7% coupon bond outstanding. It has a $1,000 face value, matures in exactly 14 years (28 semi-annual periods) and pays interest semi-annually. If current market rates for bonds of this quality are 5.4%, what is the bond's price?

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Answer 1

Answer #1

Function Arguments X PV Rate 5.4%/2 0.027 Nper 28 28. Pmt 70/2 35 1000 Fv 1000 Туре d -1155.771229 Returns the present value

Hence, Bond price is $1,155.77

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