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Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.13%. If the yield to maturity for the bond is 7.53%, what will the price of the bond be

Sagot :

abiolataiwo2015

Based on the information given the price of the bond  is $956.91.

Price of bond

To determine the of the bond we would be using financial calculator by inputting the data below.

N=Number of years=2×11=22

PMT=Payment per period=7.53%×1000/2=37.65

FV=Face value=1000

Interest rate=8.13%/2=4.065

Present Value=?

Hence:

PV=$956.91

Inconclusion the price of the bond  is $956.91.

Learn more about price of bond here:https://brainly.com/question/13990294

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