Answer:
Its price on June 3, 2020 is $90.70.
Explanation:
The price of the Bond is its Present Value (PV) .
You need to determine first the number of years between June 3, 2020 and October 31, 2035. Draw a timeline to be accurate. There are 16 years and 5 months.
Next, we can calculate the price using time value of money techniques.
N = 16.4
PMT = $100 × 5.00% = $5
P/Yr = 1
FV = $100
IRR = 5.90%
PV = ?
Using a Financial calculator to input the values as above, the price of Bond on June 3, 2020 is $90.70.
