Johnson Construction Inc. has issued 20-year $1,000 face value, 8% annual coupon bonds, with a yield to maturity of 10%. The current price of the bond is ________

A) $1,000.00
B) $1,196.36
C) $829.73
D) There is not enough information to answer this question.

Answer: C
Explanation: C)
Bond Price = PMT × +
= $80 × + = $829.73.
MODE = END
INPUT 20 10 ? -80 -1,000
KEY N I/Y PV PMT FV
CPT 829.73

Business

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