Endicott Enterprises Inc. has issued 30-year semiannual coupon bonds with a face value of $1,000. If the annual coupon rate is 14% and the current yield to maturity is 15%, what is the firm's current price per bond?
A) $934.20
B) $1,000.00
C) $934.34
D) $466.79
Answer: A
Explanation: A)
Bond Price = PMT × +
= $70 × + = $934.20
MODE = END, P/Y = 2, C/Y = 2
INPUT 60 15 ? -70 -1,000
KEY N I/Y PV PMT FV
CPT 934.20
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