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?

Question

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 11ea6c22_9303_d092_9716_b7381f5e8c58_TB1200_00

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