Union Local School District has a bond outstanding with a coupon rate of 2.9 percent paid semiannually and 16 years to maturity. The yield to maturity on this bond is 2.7 percent, and the bond has a par value of $5,000. What is the dollar price of the bond? Input area:       Settlement date 1/1/2020 Maturity date 1/1/2036 Coupon rate 2.90% Coupons per year 2 Redemption value (% of par) 100 Yield to maturity 2.70% Par value  $5,000      (Use cells A6 to B12 from the given information to complete this question. You must use the built-in Excel function to answer this question. Leave the “Basis” input blank in the function. You may enter a constant as a hard coded value.)           Output area:       Price (%)   Price

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
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Union Local School District has a bond outstanding with a coupon rate of 2.9 percent paid semiannually and 16 years to maturity. The yield to maturity on this bond is 2.7 percent, and the bond has a par value of $5,000. What is the dollar price of the bond?
Input area:  
   
Settlement date 1/1/2020
Maturity date 1/1/2036
Coupon rate 2.90%
Coupons per year 2
Redemption value (% of par) 100
Yield to maturity 2.70%
Par value  $5,000 
   
(Use cells A6 to B12 from the given information to complete this question. You must use the built-in Excel function to answer this question. Leave the “Basis” input blank in the function. You may enter a constant as a hard coded value.)  
   
   
Output area:  
   
Price (%)  
Price  

 

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