Endicott Enterprises, Inc. has issued thirty-year semiannual coupon bonds with a face value of $1,000. If...
Endicott Enterprises, Inc. has issued thirty-year semiannual coupon bonds with a face value of $1,000. If the annual coupon rate is 14% and the current yield to maturity is 8%, what is the firm’s current price per bond?
Please use a calculator for a full explication of FV, PMT, N , I/Y
Thank you
Homework Answers
FV = Future value = 1000
PMT = Annual payment = 1000*14%/2 = 70
N = Number of periods = 30*2 = 60
I/Y = Yield to maturity = 8%/2 = 4%
PV = present value = ?
Answer: 1678.70
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