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Author Question: Franklin Framing Inc. has twenty years remaining on 1,000 par value semiannual coupon bonds paying ... (Read 57 times)

Marty

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on: Jul 10, 2018
Franklin Framing Inc. has twenty years remaining on 1,000 par value semiannual coupon bonds paying semiannual coupons of 40. If the yield to maturity on these bonds is 6 per year, what is the current price?
 
  What will be an ideal response?

Question 2

Zero-coupon bonds are priced at deep discounts.
 
  Indicate whether the statement is true or false.


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wuly

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer:
Bond Price = PMT  +
= 40  + = 1,231.15.
MODE = END, P/Y = 2, C/Y = 2
INPUT 40 6 ? -40 -1,000
KEY N I/Y PV PMT FV
CPT 1,231.15

Answer to Question 2

Answer: TRUE


Marty

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Reply #2 on: Jul 10, 2018
Thank you


wuly

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Reply #3 on: Jul 10, 2018
No problemo


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