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# Calculate Bond Face Value

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1. How much should a \$1,000-face-value bonds sell for, assuming the following conditions:
- The bond pays a coupon of 11%
- The coupon payments are paid annually.
- The required rate of return on similar-risk investments is 9%.
- The bond matures in 15 years

2. How much should a \$1,000-face-value bonds sell for, assuming the following conditions:
- The bond pays a coupon of 7%
- The coupon payments are paid semi-annually.
- The required rate of return on similar-risk investments is 7%.
- The bond matures in 10 years

#### Solution Preview

1. First, we need to calculate how much the bonds have been issued by using the formula as follows:
where B is the issued price
C is the coupon payment
r is the effective rate
n is the period

However, in order to calculate the price of the bond, ...

#### Solution Summary

This posting helps with business math. The solution helps calculate bond face value. Calculations are provided along with explanations.

\$2.19