What is the current price of a $1000 par value bond maturing in 12 years with a coupon rate of 14percent, paid semiannually, that has a YTM of 13 percent?

Name: What is the current price of a $1000 par value bond maturing in 12 years with a coupon rate of 14percent, paid semiannually, that has a YTM of 13 percent?
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Question

Quizplus · Accepted Answer

Using the bond pricing formula, we get:
P = (70/1.065) + (70/1.065^2) + ... + (70/1.065^24) + (1000/1.065^24) = $1059.93, which is closest to option B.

What Is the Current Price of a $1000 Par Value