Ninja Co. issued 13-year bonds a year ago at a coupon rate of 8.5 percent. The b

Question

Ninja Co. issued 13-year bonds a year ago at a coupon rate of 8.5 percent. The bonds make semiannual payments. If the YTM on these bonds is 6.8 percent, what is the current bond price? (Round your answer to 2 decimal places. (e.g., 32.16))

Ninja Co. issued 13-year bonds a year ago at a coupon rate of 8.5 percent. The bonds make semiannual payments. If the YTM on these bonds is 6.8 percent, what is the current bond price? (Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

The current price of the bond includes 2 parts: the PV of the bond's face value, with N 24, R 3.4%, and the PV of the Annuity of 42.50, also with N 24, R 3.4%.

That's 1,137.94.

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