A corporate bond with a $1,000 face value pays a $80 coupon every six months

Finance Aug 12, 2020

A corporate bond with a $1,000 face value pays a $80 coupon every six months. The bond will mature in 10 years, and has a nominal yield to maturity of 9 percent. What is the price of the bond?

Expert Solution

price of the bond

=80*((1-(1+(9%/2))^(-10*2))/(9%/2))+1000/(1+(9%/2))^(10*2)=1455.28

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