At Westonci.ca, we connect you with experts who provide detailed answers to your most pressing questions. Start exploring now! Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.
Sagot :
The price of the bond is $100.
The bond's price is the present value of the face value plus the present value of the interest accrued throughout the bond's term.
The coupon interest rate is 5% of 100, that is $5 per year. The yield to maturity is also 5%. Because the coupon rate is equal to the yield, the bond's present value will only be its face value.
Present value = 5(P/A, 5%, 2) + 100(P/F, 5%, 2)
= 5×1.85941+ 100×0.90703
= 100
Therefore, the price of the bond is $100.
To know more about price of the bond click here:
https://brainly.com/question/15567868
#SPJ4
We appreciate your time. Please come back anytime for the latest information and answers to your questions. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.
