A bond has 1000 face value 18 months to maturity a 7 per


Question: A bond has $1,000 face value, 18 months to maturity, a 7% per year coupon (paid semi-annually), and is priced to yield 10% (APR, compounded semi-annually).

a. What is the value (PV) of the bond?

b. If the present value of the bond were $1,000 - what would be the yield (semi-annual compounding).

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Finance Basics: A bond has 1000 face value 18 months to maturity a 7 per
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