Use of Matrix Pricing for Bonds Below is a bond pricing matrix. Company H owns a bond

Question:

Use of Matrix Pricing for Bonds Below is a bond pricing matrix.

Company H owns a bond with a 13-year term and an AA rating. What is the fair value of this $1,000 bond? Note: The par value of each of the bonds is $1,000, and the numbers given in the matrix of bond prices are expressed in terms of a percentage of parvalue.

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,...