What is the market value of a bond that will pay a total of 19 annual...

What is the market value of a bond that will pay a total of 19 annual coupons of $90 each over the remainder of its life? Assume the bond has a $1,000 face value and a 7%/year yield to maturity.

Expert Solution

Solution :

The market value of the bond is = $ 1,206.71

= $ 1,207 ( when rounded off to the nearest dollar )

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 1 year ago

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