Question: 1. Bond Valuation IBM 8s 40 FA VB = ?, F = $1,000, CR (coupon rate) = 8%, m = 2 (semiannual), and is (discount

1. Bond Valuation IBM 8s 40 FA VB = ?, F = $1,000, CR (coupon rate) = 8%, m = 2 (semiannual), and is (discount rate) = 10% (rrr). P= PV (CF) = PV (Int; F) = PV (ann) + PV (Is) = PMT (PVIFA) + F (PVIF) VALUE = Price => solve for the price you are willing to pay with a 10% required return

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