# 15.5 - = \$50 X 7.360 = \$368.00 PV of Principal = \$1,000 PF...

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SIMPLE BOND QUESTION A 5% COUPON BOND HAS 10 YEARS TO MATURITY. THE YIELD TO MATURITY ON THIS BOND IS 6%. HOW MUCH WOULD YOU PAY FOR THIS BOND?

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Bond Valuation ANS PV of Interest: = \$50 PF IVA {6%, 10 periods}
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Unformatted text preview: = \$50 X 7.360 = \$368.00 PV of Principal: = \$1,000 PF IVA {6%, 10 periods} = \$1,000 X 0.558 = \$558.00 Price = \$368.00 + \$558.00= = \$986.00...
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## This note was uploaded on 11/13/2011 for the course CIVE 2*** taught by Professor - during the Spring '11 term at Carleton CA.

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15.5 - = \$50 X 7.360 = \$368.00 PV of Principal = \$1,000 PF...

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