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# Present value or price of bond

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I have a \$1000 bond which matures in 10 years with current market interest rate of 8%.If I know that the bond pays \$30 every six months, then how can I find out what the yield to maturity is, expressed on a semiannual basis. I need the yield to maturity rate in order to calculate the present value of interest payments and the present value of principal payments at maturity.

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I have a \$1000 bond with matures in 10 years with current market interest rate of 8%. If I know that the bond pays \$30 every six months, then how can I find out what the yield to maturity is, expressed on a semiannual basis. I need the yield to maturity rate in order to calculate the present value of interest payments and the present value of principal ...

#### Solution Summary

This solution is comprised of a detailed explanation to calculate the present value of interest payments and the present value of principal payments at maturity.

\$2.19