A bond with a face value of $1,000 and an annual coupon rate of 6.25%...
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Finance
A bond with a face value of $1,000 and an annual coupon rate of 6.25% was issued 4 years ago. This bond pays coupons semi-annually. When this bond was originally issued, it had 15 years until maturity. Suppose that this bond now has a yield to maturity of 3.23% (effective annual rate). Assume that the next coupon for this bond is due immediately (i.e. an investor who buys this bond now will receive a coupon right away). Calculate the price of this bond today.
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