A bond that has a face value of $1,500 and coupon rate of 4.10% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 4.60% compounded semi-annually.

A bond that has a face value of $1,500 and coupon rate of 4.10% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 4.60% compounded semi-annually.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 16E

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Question

A bond that has a face value of $1,500 and coupon rate of 4.10% payable semi-annually
was redeemable on July 1, 2021. Calculate the purchase price of the bond on February
10, 2015 when the yield was 4.60% compounded semi-annually.
Round to the nearest cent
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