Yan Yan Corporation has a $3,000 par value bond outstanding with a coupon rate of 4.4 percent paid semiannually and 20 years to maturity. The yield to maturity of the bond is
5.1 percent. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Bond price

To calculate the price of a bond, we use the following formula for bond pricing, which takes into account the present value of the bond’s coupon payments and the present value of its face value (par value):

\[
\text{Bond Price} = \sum \left(\frac{C}{(1 + r)^t}\right) + \frac{F}{(1 + r)^T}
\]

Where:
- $C$ is the semiannual coupon payment.
- $r$ is the semiannual yield (half of the annual yield to maturity).
- $t$ is the number of periods (for each semiannual payment).
- $F$ is the face value (par value of the bond).
- $T$ is the total number of semiannual periods.

### Given:
- Par value $F = 3000$
- Coupon rate = 4.4% annually, but it's paid semiannually, so each coupon payment is $0.044 \times 3000 \div 2 = 66$
- Yield to maturity = 5.1% annually, so the semiannual yield $r = 0.051 \div 2 = 0.0255$
- Number of years to maturity = 20, and with semiannual payments, the total number of periods $T = 20 \times 2 = 40$

We will calculate the price using these values.

Yan Yan Corporation has a $3,000 par value bond outstanding with a coupon rate of 4.4 percent paid semiannually and 20 years to maturity. The yield to maturity of the bond is 5.1 percent. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Learn how to calculate the dollar price of Yan Yan Corporation's bond with a par value of $3,000, a coupon rate of 4.4% (paid semiannually), and a yield to maturity of 5.1%. This finance problem explains the bond pricing formula, including the present value of coupon payments and the bond's face value. Ideal for college-level students studying finance or economics.

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