625 percent DQuestion 12 25 pt Luxury Properties offers bond

6.25 percent DQuestion 12 2.5 pt Luxury Properties offers bond with a coupon rate of 9.5 percent paid semiannually. The yield to maturity is 11.2 percent and the maturity date is 11.5 years from today. What is the market price of this bond if the face value is $1,000? O $895.67 O $941.20 O $891.56 O $893.99 O $956.18 DIQuestion 13

Solution

FV 1000 PMT 47.5 (1000 x 9.5%/2) NPER 23 (11.5 x 2) Rate 5.60% (11.2%/2) PV(Price) ($891.56) =PV(5.6%,23,47.5,1000) Option C $891.56