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Union local school district has bonds outstanding with a coupon rate of 3.5 percent paid semiannually and 13 years to maturity. the yield to maturity on these bonds is 2.5 percent and the bonds have a
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Union local school district has bonds outstanding with a coupon rate of 3.5 percent paid semiannually and 13 years to maturity. the yield to maturity on these bonds is 2.5 percent and the bonds have a par value of $10,000. what is the price of the bonds?

User Sevzas
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10,718.63 ± .1% To find the price of this bond, we need to find the present value of the bond's cash flows. So, the price of the bond is: P = $145(PVIFA1.25%,48) + $10,000(PVIF1.25%,48) P = $10,718.63
User Bhaumik
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