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Vulcan, Inc., has 7.6 percent coupon bonds on the market that have 9 years left to maturity. The bonds make annual payments and have a par value of $1,000. If the YTM on these bonds is 9.6 percent, what is the current bond price

Sagot :

Tundexiidn

Answer:

$882.97

Explanation:

Coupon rate = 7.60%

Nper = 9 years

Pmt = 76 (Fv*Coupon rate)

Fv = $1000

Yield = 9.60%

Price = Pv(rate, nper, pmt, fv)

Price = Pv(9.6%, 9, 76, 1000)

Price = $882.97

So, the current bond price is $882.97.

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