You have a 30-year Treasury of $1,000 face value that pays 4.4% coupons yearly and has 7.5 years left to maturity. The Yield to Maturity (YTM) of this bond is 5.2% per annum. What is its price?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 16P
icon
Related questions
Question
You have a 30-year Treasury of $1,000 face value that pays 4.4% coupons yearly and has 7.5
years left to maturity. The Yield to Maturity (YTM) of this bond is 5.2% per annum. What is its
price?
Remember, by convention coupons are assumed to be paid twice a year unless otherwise
specified.
Transcribed Image Text:You have a 30-year Treasury of $1,000 face value that pays 4.4% coupons yearly and has 7.5 years left to maturity. The Yield to Maturity (YTM) of this bond is 5.2% per annum. What is its price? Remember, by convention coupons are assumed to be paid twice a year unless otherwise specified.
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Rate Of Return
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning