Franklin Framing Inc. has twenty years remaining on $1,000 par value semiannual coupon bonds paying semiannual coupons of $40. If the yield to maturity on these bonds is 6% per year, what is the current price?
What will be an ideal response?
Answer:
Bond Price = PMT × +
= $40 × + = $1,231.15.
MODE = END, P/Y = 2, C/Y = 2
INPUT 40 6 ? -40 -1,000
KEY N I/Y PV PMT FV
CPT 1,231.15
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