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?

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?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

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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