A $1,000 face value bond has a remaining maturity of 10 years and a required return of 9 The bonds coupon rate is 7 4 What is the fair value of this bond ...

Computation of Bond value Response Details Par Value of the Bond 1000 Annual Coupon Rate 74 N ...

A $1,000 face value bond has a remaining maturity of 10 years and a required return of

Question:

A $1,000 bond has a remaining of 10 years and a required return of 9%. The bond’s rate is 7.4%. What is the fair value of this bond?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...