A bond that pays interest semiannually has a coupon rate of 5.17 percent and a current yield of 5.49 percent. the par value is $1,000. what is the bond's price?

A capital repayment mortgage enables you to pay back a loan by making consistent payments, frequently monthly, to progressively lower the loan's total balance during the mortgage term. Verify eligibility. If you obtain a mortgage, you will be obligated to pay back the loan's principal and interest by the end of the mortgage period.

What is the difference between interest repayment and capital?

You repay a little portion of the loan and the interest each month when you have a repayment mortgage. At the conclusion of the period, if you make all required payments, the entire loan will be paid off. You only pay the interest on a mortgage when it is interest-only.

According to given information:

Coupon payment = $1,000 x 5.17% = $51.7

Current Yield = 5.49%

Price of the Bond = Coupon Payment / Current Yield

Price of the Bond = $51.7 / 5.49%

Price of the Bond = $51.7 / 0.0549

Price of the Bond = $941.7

The Bond Matures in 1 year, the bond's price is = $941.7

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