What is the market price of a 1000 8 percent bond paying, Ask an Expert

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What is the market price of a $1,000, 8 percent bond (paying interest semi-annually) if comparable market interest rates drop to 6 percent and the bond matures in 15 years?

Interest Rate Per Period x Bond Face Value = Interest Payments

PV Annuity Factor x Interest Payments = PV of Interest Payments *

PV of $1 x Bond Face Value = PV Bond Face Value *

PV of Interest Payments + PV Bond Face Value = Bond Market Price (The answer)

please include the math

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Financial Management, Finance

Category:- Financial Management
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