A $1,000 par value bond pays $50 in interest every six months. What will be the value of the bond if it matures in 30 months and the yield-to-maturity of similar risk bonds is 8%?© BrainMass Inc. brainmass.com March 4, 2021, 6:03 pm ad1c9bdddf
Value of bond = Present value of the payoffs
The discount rate is 8/2=4% ...
Bond valuation is determined.