Coupon bond-find the bond price

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1. Estee Lauder Cos. issues a 3 percent coupon bond with 30 years maturity and $1,000 face (par) value. If the yield to maturity of this bond is 12 percent, find the bond's price.

a. none of the answers is correct

b. $242.02

c. $161.35

d. $275.03

e. $220.02

2. Archer-Daniels-Midland Co issues a 3 percent coupon bond with 14 years maturity, $1,000 face (par) value, and semi-annual payments. If the yield to maturity of this bond is 15 percent, find the bond's price. 

a. $179.29

b. $244.48

c. $305.60

d. $268.93

e. none of the answers is correct

Reference no: EM131948570

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