Explore BrainMass

Bond Valuation

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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 December 20, 2018, 12:48 am ad1c9bdddf

Solution Preview

The bond will sell at the Present Value of interest and ...

Solution Summary

The solution explains how to determine the current price of the bond.