On January 1, 2010, Fishbone Corporation purchased 300 of the $1,000 face value, 9%, 10-year bond of Walters Inc. The bonds mature on January 1, 2020, and pay interest annually beginning January 1, 2011. Fishbone purchased the bond to yield 11%. How much did Fishbone pay for the bond.© BrainMass Inc. brainmass.com June 4, 2020, 12:20 am ad1c9bdddf
Please see the attached file:
First, we calculate the value of the bond
Remaining years to maturity= 10
Calculating Value of a bond
To calculate the price of the bond we need to calculate / read from tables the values of
PVIF= Present Value Interest Factor
PVIFA= Present Value Interest Factor for an ...
The expert calculates the bone values for Fishbone Corporation.