### Bond Price CalculationYou have a $1,000 face value bond. Originally, it had a maturity of 14 years, one year ago. This bond pays 7.9% annual rate coupons, disbursed twice a year. Currently, the market for similar bonds has a Yield to Maturity (YTM) of 5.6%.**Question**: What is the current price of the bond? **Instruction**: Do not round intermediate calculations and round your answer to two decimal places (e.g., 12.34).#### Input Box:- **Current bond price**: [Enter your answer here]This exercise requires the computation of the bond's current price based on the coupon rate, market YTM, and the remaining years to maturity.

Compound = Semiannually = 2Face Value = fv = $1000Time = t = 14 * 2 = 28Coupon Rate = 7.9 / 2 =…

You have a $1,000 face value bond. You know that it originally had a maturity of 14 years, one year ago. This bond has 7.9% annual rate coupons, that are paid twice a year. The market for bonds like this has a YTM of 5.6% What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.) Current bond price

You have a $1,000 face value bond. You know that it originally had a maturity of 14 years, one year ago. This bond has 7.9% annual rate coupons, that are paid twice a year. The market for bonds like this has a YTM of 5.6% What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.) Current bond price

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

Section: Chapter Questions

Problem 1PS

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