Use the information for the question(s) below.
-The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 8.0% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.1%, then the price that this bond trades for will be closest to ________.
A) $652
B) $816
C) $979
D) $1142

Question

Use the information for the question(s) below. 
-The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 8.0% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.1%, then the price that this bond trades for will be closest to ________.
A) $652 
B) $816 
C) $979 
D) $1142

Quizplus · Accepted Answer

B) FV = 1000
I = 5.55 (11.1/2)
PMT = $40 ($80/2)
N = 20 (10 × 2)
Compute PV = 815.54

Use the Information for the Question(s) Below