Question

Renfro Rentals has issued bonds that have a 9% coupon rate, payable semiannually. The bonds mature in 13 years, have a face value of $1,000, and a yield to maturity of 7.5%. What is the price of the bonds? Round your answer to the nearest cent.

$

Answer 1

What is the price of the bonds?

=(1000*9%/2)*((1-(1+(7.5%/2))^(-13*2))/(7.5%/2))+1000/(1+(7.5%/2))^(13*2)

=1123.20

the above will be the answer..