Calculation of Market Price of A Bond

Question

Two years ago Southern Manufacturers offered a 10.5% coupon bond with semi-annual payments. At the time the yield to maturity on the market was also 10.5% and the bonds sold initially at par. The bonds have a total maturity (including the previous 2 years) of 15 years. What is the market price per bond if the yield to maturity is now 9%? The bonds have a face value of $1,000.

Summary: This question belongs to finance and discusses about market price per bond of a company’s bonds at a given yield to maturity rate.

Total word count: 15