Bond Valuation

Coupon Rate $8\mathrm{.}00\%$

Required Return $9\mathrm{.}00\%$

Frequency of coupon payments $2$

Par value $$1,000$

Years till maturity:

$19$

$15$

$10$

$5$

$1$

Bond Valuations

This bond has $20$ years to maturity

Coupon rate $8\mathrm{.}00\%$

Current required return $9\mathrm{.}00\%$

Semi Annual interest payments

Par value $$1,000\mathrm{.}00$

Find the value of this bond for each of the years to maturity listed.

Why does the value of the bond continue to increase over time?

Is this bond currently selling for a premium or a discount?