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What is the value of a 20%, 10-year bond with a redemption value of $40,000 that...

What is the value of a 20%, 10-year bond with a redemption value of $40,000 that pays dividends semi-annually, if the purchaser wishes to earn a 12% return?

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Answer #1
Value of bond =-pv(rate,nper,pmt,fv)
= $ 58,351.87
Where,
rate = 6%
nper = 20
pmt = $   4,000.00
fv = $ 40,000.00
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