A semi-annual coupon bond has a face value of $1,000 and a coupon rate of 5.9%. Time to maturity is 10 years and the current yield to maturity is 4.7%. 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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A semi-annual coupon bond has a face value of $1,000
and a coupon rate of 5.9%. Time to maturity is 10
years and the current yield to maturity is 4.7%. How
much is this bond worth? Round to the nearest cent.
Transcribed Image Text:A semi-annual coupon bond has a face value of $1,000 and a coupon rate of 5.9%. Time to maturity is 10 years and the current yield to maturity is 4.7%. How much is this bond worth? Round to the nearest cent.
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