Problem:
Wine and Roses, Inc. offers a 7.5 percent coupon bond with semiannual payments and a yield to maturity of 7.95 percent. The bonds mature in 15 years.
Required:
What is the market price of a $1,000 face value bond?
- $1,145.89
- $1,611.40
- $1,650.42
- $1,310.55
- $960.97
Note: Please show how to work it out.