Homework question help

Business & Finance
Tutor: None Selected Time limit: 1 Day

Assume that Apple bonds have just left the printer and have a stated coupon of $100 (a coupon rate of 10%) and a yield –to-maturity of 15%. The bonds mature in 3 years and the next coupon is due in 1 year. What is the fair price for the bond today?

Jul 2nd, 2015

Thank you for the opportunity to help you with your question!

Using a financial calculator: 

N = 3, 

I/Y = 15, 

PMT = -100, 

FV = -1,000, 

CPT PV = $885.84

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 2nd, 2015

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