The yield-to-maturity (APR, semi-annually compounded) on a coupon bond with semi-annual coupon payments and a maturity of 12.5 years is 6%. The bonds have a face value of $1,000 and pay semi-annual coupons of $30. The next coupon is due in six month from today. What would be the price of one bond today? (Round to the nearest tenths)

Answer rating: 100% (QA)

To calculate the price of the bond today we need to determine the present value of both the coupon p... View the full answer