What is the price of a 10 year $1000 Par Value Bond if the coupon rate is 10% (pays $100 a year if dividends paid annually) with 8 years to go to maturity. Interest rates (expected rate of return) is 8%?© BrainMass Inc. brainmass.com June 3, 2020, 10:27 pm ad1c9bdddf
The Fair value of a bond is given by
Value of bong = Present value of annual ...
Solution describes the formula and steps for calculating price of a coupon paying bond.