Baruch co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YT

Question

2 years ago

8

M on these bonds is 6%, what is the current bond price

1 answer:

IrinaVladis [17] · Answer 1 · 2022-10-19T12:52:10+03:00

Answer:

the current bond price is $1,147.20

Explanation:

The computation of the current bond price is shown below:

Given that

NPER = 10

RATE = 6%

PMT = $1,000 × 8% = $80

FV = $1,000

Here we assume the future value be $1,000

The formula is shown below:

= -PV(RATE,NPER,PMT,PV,TYPE)

After applying the above formula, the current bond price is $1,147.20