Explore BrainMass

Explore BrainMass

    What is the price of a bond that matures in ten years, has a face value of 1,000 dollars (the principal to be repaid at the end of ten years) and a coupon rate of 7 percent and a current yield of 10 percent. Interest payments are semi-annual.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What is the price of a bond that matures in ten years, has a face value of 1,000 dollars (the principal to be repaid at the end of ten years) and a coupon rate of 7 percent and a current yield of 10 percent. Interest payments are semi-annual.

    © BrainMass Inc. brainmass.com June 3, 2020, 6:53 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/price-bond-matures-ten-years-78151

    Solution Summary

    Computation done by hand using formula is examined.

    $2.19

    ADVERTISEMENT