What is the price of a two year bond with a 9% annual coupon and a yield to maturity of 8%?

SAT

1 answer:

bija089 [108]2 years ago

7 0

Answer:

Explanation:

While calculating the price of a bond, keep in mind that the price is equal to the present value of all payments received by the bondholder from the issuer. The coupon payments, which can be annual or semi-annual, the yield to maturity, the bond's life, and the face value are all important factors to consider. The bond's price is determined by discounting the face value and coupon rates to their worth at a time (t = 0) and adding them

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