Question

 Find the value of a bond maturing in 7 ​years, with a ​$1000 par value and...

 Find the value of a bond maturing in 7 ​years, with a ​$1000 par value and a coupon interest rate of 14​% ​(7​% paid​ semiannually) if the required return on​ similar-risk bonds is 17​% annual interest left parenthesis (8.5 % paid​ semiannually).

the present value of the bond is?

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Answer #1

The present value of the bond is calculated using the PV function:-

=PV(rate,nper,pmt,fv)

=PV(17%/2,7*2,14%/2*1000,1000)

=879.85

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