A semi-annual coupon bond has a face value of $1,000 and a coupon rate of 2.0%. Time to maturity is 30 years and the current yield to maturity is 1.3% How much is this bond worth? Round to the nearest cent.

A semi-annual coupon bond has a face value of $1,000 and a coupon rate of 2.0%. Time to maturity is 30 years and the current yield to maturity is 1.3% How much is this bond worth? Round to the nearest cent.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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Question

A semi-annual coupon bond has a face value of $1,000 and a coupon rate
of 2.0%. Time to maturity is 30 years and the current yield to maturity is
1.3% How much is this bond worth? Round to the nearest cent.

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