PVE XP 6-10 (similar to) Question Help The yield to maturity of a $1,000 bond with a 7

Finance Aug 05, 2020

PVE XP 6-10 (similar to) Question Help The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons and two years to maturity is 8 6% APR, compounded semiannually What is its price? The price of the bond is $(Round to the nearest cent) SU Homewor envellum. Sumn Homewor Do Hd ? Enter your answer in the answer box and then click Check Answer Clear All Check Answer All parts showing Nam Desktop SS E BE o

Expert Solution

answer

using the financial calculator

FV=1000

I/Y=8.6/2=4.3

N=2 X 2 = 4

PMT= (1000 X 7.4%)/2 = 37

CAL = PV

PV=$978.37

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