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    Calculate selling price of bonds

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    A firm has an issue of $1000 par value bonds with a 12% stated interest rate outstanding. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds of similar risk are currently earning 8%, how much will the firm's bond sell for?

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    https://brainmass.com/business/finance/calculate-selling-price-of-bonds-281814

    Solution Preview

    The bonds would sell for the present value of interest and principal. The annual interest is $1,000 X 12%=120, principal amount is $1,000, years to maturity ...

    Solution Summary

    The solution explains how to calculate the selling price of bonds

    $2.19

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