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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 May 24, 2023, 1:34 pm ad1c9bdddf
Value of bond = Present value of the payoffs
The discount rate is 8/2=4% ...
Bond valuation is determined.