# Bond Yield to Maturity and Price

Jones Gas Company has $1,000 par value bonds outstanding at 10 percent interest. The market price of the bond was $534.45. Your broker explained that this was due to the low par to value yield calculation of 22.3%. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is 7%.

© BrainMass Inc. brainmass.com June 3, 2020, 8:56 pm ad1c9bdddfhttps://brainmass.com/business/bond-valuation/bond-yield-maturity-price-158527

#### Solution Preview

Bond Yield to Maturity

Jones Gas Company has $1,000 par value bonds outstanding at 10 percent interest. The market price of the bond was $534.45. Your broker explained that this was due to the low par to value yield calculation ...

#### Solution Summary

This solution is comprised of a detailed explanation to compute the current price of the bonds if the present yield to maturity is 7%.

$2.19