Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.9 percent paid semiannually and 23 years to maturity.

image text in transcribed 

Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.9 percent paid semiannually and 23 years to maturity. The yield to maturity on this bond is 4.3 percent. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price $ 2,145.15

Step by Step Solution

3.45 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

Par value of bond 2000 Coupon rate 49 Coupon payment Par value x Coupon rate 2000 x 49 98 semian... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

13th Edition

1265553602, 978-1265553609

More Books

Students also viewed these Finance questions

Question

If g(x) dx = (5x2 + 2)6 + C, find g(x).

Answered: 1 week ago

Question

What is compounding? What is discounting?

Answered: 1 week ago