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Homework answers / question archive / a bond that pays interest semiannually bas a coupon rate of 5
a bond that pays interest semiannually bas a coupon rate of 5.41 percent and a curremt yield of 4.89 percent. The par value is $1000. What is the bond's price?
Current yield = annual coupon / current price
Current price = annual coupon / current yield
= 54.1 / 0.0489
= $1,106.34
Bond's price is $1,106.34
