Determining the pv of a bond

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PV of a Bond

  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?

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Reference no: EM132908452

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