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Calculate the present value if the bond if the ytm

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Reference no: EM13972432

1. ABC has issued a $1000 par bond with 25 years to maturity, 7% coupon rate, and semi-annual payments. Calculate the present value if the bond if the YTM is 7%.

2. How would the answer to 1 change if the YTM is 9%?

3. How would the answer to 1 change if the YTM is 5%?

4. What bond relationship are Problems 1-3 discussing? 

Reference no: EM13972432

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