Moerdyk Corporation 's bonds have a 15 year maturity, a 7 25 semiannual coupon, and a par value of $1,000 The going interest rate (rd) is 6 20 , based on semiannual compounding What is the bond ...

Coupon Par value FV 1000 Rate 725 Perio ...

Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000.

Question:

Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a of $1,000. The going interest rate (rd) is 6.20%, based on semiannual compounding. What is the bond?
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...