15.4 - = $70 X 6.710 = $469.70 PV of Principal = $1,000 PF...

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SIMPLE BOND QUESTION A 7% COUPON BOND HAS 10 YEARS TO MATURITY. THE YIELD TO MATURITY ON THIS BOND IS 8%. HOW MUCH WOULD YOU PAY FOR THIS BOND?
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Bond Valuation ANS PV of Interest: = $70 PF IVA {8%, 10 periods}
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Unformatted text preview: = $70 X 6.710 = $469.70 PV of Principal: = $1,000 PF IVA {8%, 10 periods} = $1,000 X 0.4630 = $463.00 Price = $469.70 + $680.06= = $1,149.76...
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