question archive Annual Payments: Coupon rate = 10%, Par = $1,000, Maturity = 10 years, YTM = 11% Calculate price
Annual Payments: Coupon rate = 10%, Par = $1,000, Maturity = 10 years, YTM = 11% Calculate price
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Annual Payments: Coupon rate = 10%, Par = $1,000, Maturity = 10 years, YTM = 11% Calculate price. Answer: 1 X Check
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Coupon=$1000×10%=$100
Bond price=$100÷(1.11)+$100÷(1.11)2+$100÷(1.11)3+$100÷(1.11)4+$100÷(1.11)5+$100÷(1.11)6+$100÷(1.11)7
+$100÷(1.11)8+$100÷(1.11)9+$100÷(1.11)10
+$1000÷(1.11)10
=$90.09+$81.16+$73.12+$65.87+$59.35+$53.46+$48.17+$43.39+$39.09+$35.22+$352.18
=$941.11
Bond price=$941.11
