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Calculate the current price for a $1000 face value bond paying semiannual coupons, with the following...

Calculate the current price for a $1000 face value bond paying semiannual coupons, with the following attributes: The bond was issued 8 years ago with a 20-year (original) maturity. Coupon rate: 6% YTM: 4%

$ 1,189.14

$ 830.64

$ 1,273.55

$ 1,135.78
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Answer #1

Current price is calculated using the PV function as follows:-

=PV(rate,nper,pmt,fv)

=PV(4%/2,12*2,6%/2*1000,1000)

=1189.14

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