The bond value will be the sum of the present values of all the cashflows discounted at 2% per period rate.
The present value has been calculated as: Cashflow / (1 + Discount rate) ^ number of periods
Periods | Cashflow | Discount | Present Value | Bond Value |
1 | 110 | 2% | $107.84 | $8,786.69 |
2 | 110 | 2% | $105.73 | |
3 | 110 | 2% | $103.66 | |
4 | 110 | 2% | $101.62 | |
5 | 110 | 2% | $99.63 | |
6 | 110 | 2% | $97.68 | |
7 | 110 | 2% | $95.76 | |
8 | 110 | 2% | $93.88 | |
9 | 110 | 2% | $92.04 | |
10 | 110 | 2% | $90.24 | |
11 | 110 | 2% | $88.47 | |
12 | 110 | 2% | $86.73 | |
13 | 110 | 2% | $85.03 | |
14 | 110 | 2% | $83.37 | |
15 | 110 | 2% | $81.73 | |
16 | 110 | 2% | $80.13 | |
17 | 110 | 2% | $78.56 | |
18 | 110 | 2% | $77.02 | |
19 | 110 | 2% | $75.51 | |
20 | 110 | 2% | $74.03 | |
21 | 110 | 2% | $72.58 | |
22 | 110 | 2% | $71.15 | |
23 | 110 | 2% | $69.76 | |
24 | 110 | 2% | $68.39 | |
25 | 110 | 2% | $67.05 | |
26 | 11110 | 2% | $6,639.11 |
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