If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%, what should be its price in the bond market (ie, PV)?

If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%, what should be its price in the bond market (ie, PV)?

2. What are
“Zero-coupon” bonds?

3. Suppose you
see the following bond price quote in the newspaper:

McDonalds 5.7% 2039……..122.733

What can you tell about this bond from
reading the price quote?

4. (calculating
the present value of a bond) If a
corporate bond with a face value of $1,000 has 24 years to go until it matures,
has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%,
what should be its price in the bond market (ie, PV)?


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