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 8%, what is the firm's current price per bond?

A) $578.82
B) $579.84
C) $1,675.47
D) $1,678.70


Answer: D
Explanation: D)
Bond Price = PMT × +
= $70 × + = $1,678.70.
MODE = END, P/Y = 2, C/Y = 2
INPUT 60 8 ? -70 -1,000
KEY N I/Y PV PMT FV
CPT 1,678.70

Business

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