Bond valuation) Calculate the value of a bond that matures in 19 years and has a...

Bond valuation) Calculate the value of a bond that matures in 19 years and has a $1,000 par value. The annual coupon interest rate is 12 percent and the market's required yield to maturity on a comparable-risk bond is 11 percent. The value of the bond is $

(Round to the nearest cent.)

Solutions

Expert Solution

Solution :

The value of the bond is = $ 1,078.39 ( when rounded off to the nearest cent )

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

jeff jeffy answered 11 months ago

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