Question

A bond with 16 years to maturity and a semiannual coupon rate of 6.04 percent has a current yield of 5.67 percent. the bond's par value is $2,000. what is the bond's price?

Answer 1

The bond's price is $2,130.51, A bond with 16 years to maturity and a semiannual coupon rate of 6.04 percent has a current yield of 5.67 percent. the bond's par value is $2,000.

Current yield = annual Payment/ Market Price

Market Price = Annual Payment Current Yield

                     = (2000*6.04%)/ 0.0567

                     = 2130.511464

                     = $2,130.51

Par fee, in finance and accounting, means said fee or face cost. From this come the expressions at par, over par and under par. What does $1 par price mean?

Key Takeaways

A par price for a stock is its in-step with-share fee assigned by the organization that issues it and is frequently set at a very low amount together with one cent. A no-par inventory is issued without any unique minimal price. Neither form has any relevance to the stock's real cost in the markets.

Learn more about par value here:-brainly.com/question/20813161

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