Several years ago, castles in the sand inc. issued bonds at face value of $1,000 at a yield to maturity of 6.2%. now, with 6 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has increased to 15%. what is the price of the bond now? (assume semiannual coupon payments.) (do not round intermediate calculations. round your answer to 2 decimal places.)

We have:

Face value FV = $1000

Coupon payment Pmt = 1000 x 6.20%/2 = 31

N = 6x2 = 12

R = 15%/2

We can use following formula to calculate the price of this bond:

PV = Pmt x PVIFA(N,R) + FV x PVIF(n, R)

= 31 x PVIFA(12,7.50%) + 1000 x PVIF(12,7.50%)

= 31 x 7.73528 + 1000 x 0.41985

= $659.64

Therefore, the price of this bond would be $649.64.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

the correct answer is d. wealthy colonists to take care of the less fortunate. hope this