Calculating Bond Issuance Prices

Presented below are annual coupon rates, yield rates, and expected duration for a series of debentures.

Calculate the issuance price for each debenture assuming that the face value of each bond is $$1,000$ and that interest is paid semiannually.

Bond Coupon Rate Yield Rate Duration

A $6\mathrm{.}0\%6\mathrm{.}0\%10$ years

B $9\mathrm{.}0\%8\mathrm{.}0\%15$ years

C $0\mathrm{.}0\%6\mathrm{.}0\%8$ years

D $4\mathrm{.}0\%8\mathrm{.}0\%5$ years

E $5\mathrm{.}0\%10\mathrm{.}0\%6$ years

Do not round until your final answer. Round your answer to the nearest dollar.

A Answer

$1,000$

B Answer

$1,025$

C Answer

$843$

D Answer

$902$

E Answer

$956$Calculating Bond Issuance Prices

Presented below are annual coupon rates, yield rates, and expected duration for a series of debentures.

Calculate the issuance price for each debenture assuming that the face value of each bond is $$1,000$ and that interest is paid semiannually.

Do not round until your final answer. Round your answer to the nearest dollar.