A bond recently issued matures in 15yrs. They have a par value of $1000 and an annual coupon of 6%. If the current market interest rate is 8% at what price should the bonds sell?
I have tried using Excel and the numbers don't make sense when I put them into the formula.© BrainMass Inc. brainmass.com August 17, 2018, 4:28 pm ad1c9bdddf
The bond will sell at the Present Value of interest and ...
The solution explains how to determine the current price of the bond.