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Calculate the face value of a bond one year later

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Question - Calculate the face value of a bond one year later given the following circumstances. A borrowed amount of $40 million where 40,000 bonds are issued to give the company the ability to borrow $1,000 per bond over the next 30 years. If each bond has a face value of $1,000 and coupon rate 5.3 percent, calculate the value of the bond one year later if the yield to maturity is changed to 4.8% (Assume coupon payments are semiannual).

a. $1,000.00

b. $1,077.84

c. $1,079.06

d. $925.30

Reference no: EM133087957

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