Question

Assume that today's date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000. How much you will pay for the bond if you purchased the bond today?

Company Price Coupon Rate Maturity Date YTM Current Yield Rating
Robin Hood 134.569 5.253 2-15-2040 - - D

Answer 1

Answer: $1,345.69

Explanation:

The price of the bond today can be calculated by multiplying the Par Value of the bond with the quoted percentage price of the bond today.

Quoted Percentage price = 134.569%

Price of bond = 1,000 * 134.569%

= $1,345.69