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.

## Answer This Question

## Related Questions

- accounting - a 15 year bond pays 11% on a face value of $1000. If similar bonds ...
- Economic - a 20 year bond pays on a face value of $1,000. If similar bonds are ...
- Finance - Heinz Corporation bonds carry a coupon of 8% and will mature in 5 ...
- Finance - Heinz Corporation bonds carry a coupon of 8% and will mature in 5 ...
- finance - A manufacturing company issues a bond with a 100,000 face value and a ...
- Finance - The Carter Company's bond mature in 10 years have a par value of 1,000...
- finance - Assume a $1,000 face value bond has a coupon rate of 8.5 percent, pays...
- Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
- Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
- Finance - Suppose the September CBOT Treasury bond futures contract has a quoted...

More Related Questions