What would you pay for a bond that pays an annual coupon of $45, has a face value of $1,000, matures in 11 years, and has a yield to maturity of 10%? 872 viewsJanuary 20, 2017 0 Darshita6.14K January 20, 2017 0 Comments What would you pay for a bond that pays an annual coupon of $45, has a face value of $1,000, matures in 11 years, and has a yield to maturity of 10%? A) $642.77 B) $775.34 C) $800.18 D) $910.14 E) $976.38 0 Answers ActiveVotedNewestOldest 0 Darshita6.14K Posted January 20, 2017 0 Comments Answer: A Response: price = $45 [(1 – 1/1.111) / .1] + 1,000 / 1.111 = $642.77 TVOM stuff? 1000 FV, 45 PMT, 11 N, 10 I/Y, CPT PV = -642.77 You are viewing 1 out of 0 answers, click here to view all answers. Register or Login
