# 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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