Question

Blue Water bonds have a face value of $1,000, a coupon rate of 6.5 percent, semiannual...

Blue Water bonds have a face value of $1,000, a coupon rate of 6.5 percent, semiannual interest payments, and mature in 11.5 years. What is the current price of these bonds if the yield to maturity is 6.36 percent?

A. $979.20

B. $984.56

C. $1,011.30

D. $1,018.27

E. $1,020.00

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Answer #1

Nper 11.5*2 Pmt 1000 *0.065 1/232.5 Rat 0.0636 1/2 Fv 23 0.0318 1000 (-PV(rate,nper,pmt,fv)) (-PV(0.0318, PV ,32.5,1000)) $1,

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