Bond value - semiannual payment
Assume that you wish to purchase a 25-year bond that has a maturity value of $1,000 and makes semiannual interest payments of $45. If you require a 7 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
The maximum price would be the present value of interest and principal. Interest amount is $45, ...
The solution explains how to determine the value of a bond