Lambert, Inc. bonds have a face value of $1,000. The bonds carry a 9 percent coupon, pay interest semiannually, and mature in 11 years. What is the current price of these bonds if the yield to maturity is 8.79 percent?

Lambert, Inc. bonds have a face value of $1,000. The bonds carry a 9 percent coupon, pay interest semiannually, and mature in 11 years. What is the current price of these bonds if the yield to maturity is 8.79 percent?

a. $705.14
b. $710.36
C. $1,014.62
d. $1,020.15
e. $1,641.04

Answer: The correct answer is $1,014.62.

Enter 11×2 8.79/2 90/2 1,000
N I/Y PV PMT FV
Solve for -1,014.62

Loading

Leave a Reply

Your email address will not be published.