Question
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 27 years to maturity, and a coupon rate of 3.6 percent paid annually. If the yield to maturity is 3.2 percent, what is the current price of the bond in euros?
Input area: | ||
Settlement date | 1/1/2020 | |
Maturity date | 1/1/2047 | |
Coupon rate | 3.60% | |
Coupons per year | 1 | |
Redemption value (% of par) | 100 | |
Yield to maturity | 3.20% | |
Par value | 1,000 |
(Use cells A6 to B12 from the given information to complete this question. You must use the built-in Excel function to answer this question. Leave the Basis input blank in the function. You may enter a constant as a hard coded value.) | |||||||||
Output area: | ||
Price (% of par) | ||
Price |
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