A corporate bond with a face value of $100,000 was issued six years ago and there are four years remaining until maturity. The bond pays semi-annual coupon payments of $4500, the coupon rate is 9% pa paid twice yearly and rates in the marketplace are 8% pa compounded semi-annually. What is the value of the bond today?

Answer rating: 100% (QA)

To calculate the value of the bond today we can use the following formula Bond value Coupon payment ... View the full answer