Question
Assume that you wish to buy a bond with 26 years to maturity, with a par value of $1,000, and a coupon rate of 20.54%.
Assume that you wish to buy a bond with 26 years to maturity, with a par value of $1,000, and a coupon rate of 20.54%. Assume semi-annual payments. If the yield to maturity (YTM) is 23.21%, what is today's price of this bond?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
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Investment Science
Authors: David G. Luenberger
2nd Edition
0199740089, 978-0199740086
