Maturity assuming that the bond yield to maturity

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1. Compute the price of a $1,000 par value, 6 percent (semi-annual payment) coupon bond with 25 years remaining until maturity assuming that the bond's yield to maturity is 17 percent? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).

2. Calculate the current price of a $1,000 par value bond that has a coupon rate of 13 percent, pays coupon interest semi-annually, has 27 years remaining to maturity, and has a current yield to maturity (discount rate) of 18 percent. (Round your answer to 2 decimal places and record without dollar sign or commas).

Reference no: EM131904308

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