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Five years​ ago, Simpson Warehouses Inc. issued twentyminusfiveminusyear ​10% annual coupon bonds with a​ $1,000 face value each. Since​ then, interest rates in general have risen and the yield to maturity on the Thompson bonds is now​ 12%. Given this​ information, what is the price today for a Thompson Tarps​ bond?

Respuesta :

Answer:

The price today for a Thompdon

tarps bond is $850.61

Explanation:

coupon rate = 10%

NPER = 20

Face value = $1000

PMT = Face value*coupon rat

        = 100

yield = 12%

price = PV = $850.61

Therefore, The price today for a Thompdon

tarps bond is $850.61