Brittany Co. issued 15-year bonds one year ago at a coupon rate of 8.50 percent. The bonds

Question:

Brittany Co. issued 15-year bonds one year ago at a coupon rate of 8.50 percent. The bonds make semiannual payments. If the YTM on these bonds is 7.90 percent, what is the current bond price?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...