Calculate the value of a bond that matures in 18years and has a $ 1,000par value....

Calculate the value of a bond that matures in 18years and has a $ 1,000par value. The annual coupon interest rate is9percent and the market's required yield to maturity on a comparable-risk bond is 14percent.

The value of the bond is? (Round to the nearest cent.)

Solutions

Expert Solution

Solution :

The value of the bond is = $ 676.63

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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