Calculate the value of a bond that matures in 12 years and has a $1,000 face value The coupon interest rate is 8 percent and the investors required rate of return is 12 percent ...

Calculation of present value of the Bond Face value 100 ...

Calculate the value of a bond that matures in 12 years and has a $1,000 face value.

Question:

Calculate the value of a bond that matures in 12 years and has a $1,000 face value. The interest rate is 8 percent and the investor’s required rate of return is 12 percent.

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...