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    Bond Value

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    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.

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    Solution Preview

    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 ...

    Solution Summary

    The expert calculates the bone values for Fishbone Corporation.