Today I feel really stupid and can’t decide how to solve the simpliest problem 1000$ par value bond that matures in 20years. cupon rate 10% and yield to maturity 12%. What is the bond price using annual compounding. If it says annual compounding should we assume that cupon is paid once a year?

yes

N=20 I/Y=12 PMT=100 PV=? FV=1000 PV=-850.61 Using Bond functions SDT=1.0100 CPN=10 RDT=1.0120 RV=100 ACT 1/Y YLD=12 CPT PRI = 85.06111 So for a 1000$ bond 850.61 CP

thanks guys