Assuming the appropriate YTM on the SASE bond is 7.5%, then the price that this bond trades for will be closest to:
A) $1,045
B) $691
C) $1,000
D) $957
Answer: A)FV= 1000
I= 3.75 (7.5/2)
PMT= 40 (80/2)
N= 30 (15 × 2)
Compute PV= 1044.57
Assuming the appropriate YTM on the SASE bond is 7.5%, then the price that this bond trades for will be closest to:
A) $1,045
B) $691
C) $1,000
D) $957
Answer: A)FV= 1000
I= 3.75 (7.5/2)
PMT= 40 (80/2)
N= 30 (15 × 2)
Compute PV= 1044.57