Plymouth Fountains Inc. has issued 30-year semiannual coupon bonds with a face value of $1,000. If the annual coupon rate is 6% and the current yield to maturity is 7%, what is the firm's current price per bond?
A) $875.28
B) $1,000.00
C) $934.34
D) $466.79
Answer: A
Explanation: A)
Bond Price = PMT × +
MODE = END, P/Y = 2, C/Y = 2
INPUT 60 7 ? -30 -1,000
KEY N I/Y PV PMT FV
CPT 875.28
Business
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