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F. Naz
F. Naz, B.Com
Category: Single Problem
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Experience:  Have completed B.Com and CA Finalist
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What is the market value of the following bond?Coupon 8%Maturity

Customer Question

What is the market value of the following bond?
Coupon 8%
Maturity date 2038
Interest paid semiannually
Par Value $1000
Market interest rate 10%
Submitted: 1 year ago.
Category: Single Problem
Expert:  F. Naz replied 1 year ago.
Maturity period = 2038-2016 = 22 years x 2 = 44interest = 1000*.04 = 40Market Value = 1000*.1169 + 40*17.6628 = 823.41 or rounded to 823Please rate the answer so I get credit for my efforts, thanks.