Question #122189

5. Home for less Corporation's bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 4.75%, based on semiannual compounding. What is the bond’s price?

Expert's answer

"P=\\frac{1000*0.0625*(1\/1.0475^{10}-1)}{1\/1.0475-1}+\\frac{1000}{1.0475^{10}}=1140.45"

Learn more about our help with Assignments: Finance

## Comments

## Leave a comment