# Calculate Bond Face Value

Please help with the following problem. Provide calculations and explanations.

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

https://brainmass.com/business/business-math/calculate-bond-face-value-103246

#### 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.