#17. What must be the price of a $ 1000 bond with a 6.5% coupon rate, annual coupons, and 20 years to maturity if YTM...

Question

Question

#17. What must be the price of a $ 1000 bond with a 6.5% coupon rate, annual coupons, and 20 years to maturity if YTM is 7.9 % APR? A. $ 1033.82

B. $ 861.52

C. $ 689.21

D. $ 1206.12

Answer 1

Answer #1

COUPON RATE 6.50% NPER 20 (years to maturity) PMT 65 (face value x coupon rate) FACE VALUE $ 1,000.00 YIELD 7.90% PRICE = PV

Answer 2

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#17. What must be the price of a $ 1000 bond with a 6.5​% coupon​ rate, annual​ coupons, and 20 years to maturity if YTM...