Aloha, Inc., has 5.5 percent coupon bonds on the market that have 10 years left to maturity. If the YTM on these bonds is 6.42 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rrioo

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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41)What am I doing wrong?

Aloha, Inc., has 5.5 percent coupon bonds on the market that have 10 years left to
maturity. If the YTM on these bonds is 6.42 percent, what is the current bond price? (Do
not round intermediate calculations. Round your answer to 2 decimal places.)
Price
annual coupon
55.00000
Coupon Bonds
0.055
PV of annuity
7.360503366
yrs left
10
PV of discount
0.536744316
YTM
0.0642
536.7443161
FV
1000
sCurrent Bond Price
941.572
INCORRE( INCORRE( INCORRECT
1.0642
5 1.86308
RIGHT ANSWER
933.61
Transcribed Image Text:Aloha, Inc., has 5.5 percent coupon bonds on the market that have 10 years left to maturity. If the YTM on these bonds is 6.42 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price annual coupon 55.00000 Coupon Bonds 0.055 PV of annuity 7.360503366 yrs left 10 PV of discount 0.536744316 YTM 0.0642 536.7443161 FV 1000 sCurrent Bond Price 941.572 INCORRE( INCORRE( INCORRECT 1.0642 5 1.86308 RIGHT ANSWER 933.61
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