Posted by **pookie** on Friday, April 3, 2009 at 11:25am.

a 10 year bond pays 8% on a face value of $1000. If similar bonds are yeilding 10%, what is the market value of the bond. use annual analysis

- accounting -
**Helper**, Friday, April 10, 2009 at 10:38pm
The formula is:

PV of the principle, $1,000

Plus the PV of the interest

Are you using Present Value Tables?

PV of the principle comes from the PV of $1.

PV of the interest is one years' interest and the factor from he PV of annuity table.

Use the 10% column from the table for 10 periods.

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