In considering ending her relationship with her husband, Marie considers how they might divide up their household goods, and how
1 answer:
You might be interested in
Answer:
Quoted price of bond = $1825.05
Explanation:
The quoted price or price of the bond can be calculated by taking adding the present value of the annuity payments in form of interest made by the bond and the present value of the face value of the bond. The formula for the price of bond is attached.
The interest is payed semi annually, thus the semi annual coupon payment (C) is,
C = 2000 * 5.87% * 6/12 = 58.7
The semi annual YTM is = 6.9%/2 = 3.45%
Total semi annual periods are = 13 * 2 = 26
Bond Price = 58.7 * [(1 - (1+0.0345)^-26) / 0.0345] + 2000 / (1+0.0345)^26
Bond Price = $1825.051207 rounded off to $1825.05
