Ninja co. issued 14-year bonds a year ago at a coupon rate of 6.9 percent. the bonds make semiannual payments. if the ytm on these bonds is 5.2 percent, what is the current bond price?

Par=1000

t=13 years to maturity (original time to maturity = 14 years but the bond wasissued a year ago) = 26 semiannual periods

C=6.9% annually = 3.45% semiannually

YTM=5.2% annually = 2.6% semiannually

P = $34.50 ({1 - [1 / (1 +.026) ]26} /.026) + $1,000[1 / (1 +.026) 26 ] = $1,159.19