CHAPTER 6 BOND AND STOCK VALUATION 13. PB = $65[PVIFA(6%, 30 periods)] + $1,000[PVIF(6%, 30 periods)] = $65[13.7648] + $1000[.1741] = $1,068.81 14. YTM = []1/10 1 = .0481 or 4.81% – 15. a. For the bond to be issued at par, the coupon rate and the discount rate must be the same, 15%.
CHAPTER 6 BOND AND STOCK VALUATION 13. PB = $65[PVIFA(6%, 30 periods)] + $1,000[PVIF(6%, 30 periods)] = $65[13.7648] + $1000[.1741] = $1,068.81 14. YTM = []1/10 – 1 = .0481 or 4.81% 15. a. For the bond to be issued at par, the coupon rate and the discount rate must be the same, 15%.
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