Explore BrainMass

Explore BrainMass

    Bond Valuation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com June 3, 2020, 8:50 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/bond-valuation-155103

    Solution Preview

    The current market price is the present value of interest and principal. The annual interest is 1,000X8%=$80, principal ...

    Solution Summary

    The solution explains how to calculate the current market price of bonds.

    $2.19

    ADVERTISEMENT