Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 9 years ago

A $1000 face value bond has a remaining maturity of 8 years and a required return of 11%. The bond’s coupon ra?

A $1000 face value bond has a remaining maturity of 8 years and a required return of 11%. The bond’s coupon rate is 6%. What is the fair value of the bond?

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  • Don G
    Lv 7
    9 years ago
    Favorite Answer

    With a FV of $1,000, an annual interest PMT of $60, 8 yr term, and a YTM of 11%, the PV = $742.69

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