Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.
Sagot :
Answer:
$1051.51
Step-by-step explanation:
[tex] \in[/tex]
Explanation:
Coupon rate 10%
Face value = $1,000
Yield to maturity = 8%
Annual coupon will be:
= Face value × Coupon rate
= 1000 × 10%
= 100
Therefore, the price of bond will be:
= Annual coupon × Present value of annuity factor + $1000 × Present value of the discounting factor
= (100 x 2.5771) + (1000*0.7938)
= 257.71 +793.8
= $1051.51 =
The price of the bond is $1051.51
We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.