Question

a coupon bond that pays interest of $100 annually has a par value of $1,000, matures in 5 years, and has ytm of 10%. the price of this bond is .

Answer 1

Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental). A bond is a fixed obligation to pay that is issued by a corporate or government organization to investors.

What is bond?

• Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental). A bond is a fixed obligation to pay that is issued by a corporate or government organization to investors.
• A bond is a fixed obligation to pay that contains the specifics of the loan and its payments. Bonds are a way to raise money for infrastructural or operational projects. Bonds are typically repaid as of the bond's maturity date and contain periodic coupon payments.
• Bonds are tradable assets that are securitized versions of corporate debt issued by businesses. Since bonds historically paid debtholders a fixed interest rate (coupon), they are referred to as fixed-income instruments. Interest rates that are variable or floating are also extremely prevalent today.

FV = 1,000,

PMT = 70,

n = 5,

i = 10,

PV = 886.28.

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