Bonds have a face value of $1,000. The bonds carry a 9.43 percent coupon, pay interest semiannually, and mature in 14 years. What is the current price of these bonds if the yield to maturity is 8.81 percent?
Added by Tyler E.
Step 1
43% of $1,000, which is $94.30. Since the coupon is paid semiannually, the semiannual coupon payment is $94.30/2 = $47.15. Show more…
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