Compute price of bonds based on semiannual interest payments Financial Management
Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 par value bonds have a quoted annual interest rate of 10 percent and interest is paid semiannually. The yield to maturity on the bonds is 14 percent annual interest. There are 10 years to maturity.
Compute the price of the bonds based on semiannual interest payments. Use Appendix B andAppendix D. (Round “PV Factor” to 3 decimal places, intermediate and final answer to 2 decimal places.Omit the “$” sign in your response.)
Price of the bonds $
