Johnson Construction Inc. has issued 20-year $1,000 face value, 7% annual coupon bonds, with a yield to?

Johnson Construction Inc. has issued 20-year $1,000 face value, 7% annual coupon bonds, with a yield to maturity of 10%. The current price of the bond is____?

1 Answer

Relevance
  • 6 years ago
    Best Answer

    A bond settling on 03/22/2014 with a par value of 1,000.00, a maturity date of 03/22/2034, a coupon rate of 7.00, and a market yield of 10.00 will be priced at $744.59. (This is with a redemption value of $1,000.00, which is typically the same as par value.)

    An online bond price calculator is available at:

    http://www.investopedia.com/calculator/bondprice.a... .

Still have questions? Get your answers by asking now.