The Rose Shoppe offers 10-year,8 percent coupon bonds with semiannual payments and a yield to maturity of 8.24 percent.What is the market price of a $1,000 face value bond?

Name: The Rose Shoppe offers 10-year,8 percent coupon bonds with semiannual payments and a yield to maturity of 8.24 percent.What is the market price of a $1,000 face value bond?
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Question

Quizplus · Accepted Answer

Bond value = [(.08 × $1,000)/2] × ({1 - 1/[1 + (.0824/2)]^{10 × 2}}/(.0824/2))+ {$1,000/[1 + (.0824/2)]^{10 × 2}} = $983.86

The Rose Shoppe Offers 10-Year,8 Percent Coupon Bonds with Semiannual