Intel recently issued semi-annual, 4.8% coupon bonds. The bond will mature in 3 years. The current yield-to- maturity for bonds like this is 2.9%. Assuming the par value is $1,000, what is the price of this bond?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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Intel recently issued semi-annual, 4.8% coupon bonds. The bond will mature in 3 years. The current yield-to- maturity for bonds like this is 2.9%. Assuming the par value is $1,000, what is the price of this bond?

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