On 4 February 2010 a company issued a bond with a face value of $250,000 that matures exactly 25 years later. The coupon rate is 5% p.a. compounded half-yearly. What is the bond's value on 4 February 2017 assuming the market yield is 8% p.a. compounded half-yearly.

Answer rating: 100% (QA)

To calculate the bonds value on 4 February 2017 you can use the present value formula for bonds The ... View the full answer