The Rose Shoppe offers 10-year,6 percent coupon bonds with semiannual payments and a yield to maturity of 5.72 percent.What is the current market price if the face value is $1,000?

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Quizplus · Accepted Answer

Bond value = [(0.06 × $1,000)/ 2] × ({1 - 1 / [1 + (0.0572 / 2)]¹⁰^×2} / (0.0572 / 2))+ {$1,000 / [1 + (0.0572 / 2)]^10×2} = $1,021.10 11ea5bb7_de32_69a6_8724_59fdeb215953_TB1005_00

The Rose Shoppe Offers 10-Year,6 Percent Coupon Bonds with Semiannual