# Compute Present Value

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Suppose you have a coupon bond with a coupon rate 4.5%, face value of $1000 and the bond has 3 years to maturityfrom now. what is the yield to maturity if you purchased the bond for $1000? and what would the price be if the yield to maturity was 10%?

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#### Solution Preview

For this bond,

<br>Payment=4.5%*1000=45

<br>N=3 years

<br>If purchased for $1000 ...

#### Solution Summary

What is the yield to maturity within the bond?

$2.49