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    Bond Price and Interest

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    Ricks Roofing Corporation's bonds have a 15-year maturity, a 7% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 6%, based on semiannual compounding.

    What is the price of this bond?

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    Please see the attached file:
    Ricks Roofing Corporation's bonds have a 15-year maturity, a 7% semiannual coupon, and a par value of $1,000.  The going interest rate (rd) is 6%, based on semiannual compounding.  

    What is the bond's price?

    Calculating price of a bond
    To calculate the price of the bond we need to calculate / read ...

    Solution Summary

    This solution calculates bond price.

    $2.19

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