Yan Yan Corp. has a $3,000 par value bond outstanding with a coupon rate of 5.6

Question

Yan Yan Corp. has a $3,000 par value bond outstanding with a coupon rate of 5.6 percent paid semiannually and 19 years to maturity. The yield to maturity of the bond is 6.4 percent.

What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Yan Yan Corp. has a $3,000 par value bond outstanding with a coupon rate of 5.6 percent paid semiannually and 19 years to maturity. The yield to maturity of the bond is 6.4 percent.

Explanation / Answer

Face value (FV) $                                         3,000 Coupon rate 5.60% Number of compounding periods per year 2 Interest per period (PMT) $                                               84 Number of years to maturity 19 Number of compounding periods till maturity (NPER) 38 Market rate of return/Required rate of return 6.40% Market rate of return/Required rate of return per period (RATE) 3.20% Bond price PV(RATE,NPER,PMT,FV)*-1 Bond price $                                   2,738.29

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.