GE bonds have 10 years remaining to maturity. Interest is paid annually;they have a $1000 par value;the coupon interest rate is 8%; and the yield to maturity is 9%.
What is the bond's current market price?
The current market price is the present value of interest and principal. The annual interest is 1,000X8%=$80, principal ...
The solution explains how to calculate the current market price of bonds.