A municipal bond with a coupon rate of 2.7 percent has a yield to maturity of 3

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

A municipal bond with a coupon rate of 2.7 percent has a yield to maturity of 3.7 percent. Assume a face value of $5,000. If the bond has 12 years to maturity, what is the price of the bond? 

Aug 22nd, 2015

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

I am working on it. Will deliver before time. Thanks

Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 22nd, 2015

C = coupon /Interest Payment
F = Face Value      
P = Price market      
n= Years to maturity      
YTM = C +( F-P)/ (F+P)/2      
3.7%  = 135 + (5000-P)/(5000+)/2
Market Price = P = 4522.47  answer    

Aug 22nd, 2015

Are you studying on the go? Check out our FREE app and post questions on the fly!
Download on the
App Store
...
Aug 22nd, 2015
...
Aug 22nd, 2015
Dec 9th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer