Question

Bond valuationlong dash—Annual interest   Calculate the value of the bond shown in the following​ table, assuming...

Bond

valuationlong dash—Annual

interest   Calculate the value of the bond shown in the following​ table, assuming it pays interest

annually.

​(Click on the icon located on the​ top-right corner of the data table below in order to copy its contents into a​ spreadsheet.)

Par value

Coupon interest rate

Years to maturity

Required return

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Open in Excel +

​$500500

99​%

88

88​%

The value of the bond is

​$nothing .

​(Round to the nearest​ cent.)

0 0
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Answer #1

Using financial calculator
N=8
PMT=-9%*500=-45
I/Y=8%
FV=-500
CPT PV=$528.73

The value of the bond is $528.73

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