1. (Calculating the present value of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%, what should be its price in the bond market (i.e., PV)?

1. (Calculating the present value of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%, what should be its price in the bond market (i.e., PV)?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 20P

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Question

1. (Calculating the present value of a bond)
If a corporate bond with a face value of
$1,000 has 24 years to go until it matures,
has a coupon interest rate of 5.7% and a
yield to maturity (YTM) of 4.201%, what
should be its price in the bond market (i.e.,
PV)?

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