Jakked NRG Drinxx is offering semiannual bonds that mature in 15 years. The bonds have a...
Jakked NRG Drinxx is offering semiannual bonds that mature in 15 years. The bonds have a 6% coupon, and you want to buy 1000 par value. If similar bonds offer a 4% yield to maturity, what is a fair price for these bonds?
Homework Answers
fair price for these bonds
=(1000*6%/2)*((1-(1+(4%/2))^(-15*2))/(4%/2))+1000/(1+(4%/2))^(15*2)
=1223.96
the above is answer..
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