???(Bond valuation) A bond that matures in 8 years has a ?$1,000 par value. The annual...

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???(Bond valuation) A bond that matures in 8years has a ?$1,000 par value. The annual coupon interest rate is 9percent and the? market's required yield to maturity on a?comparable-risk bond is 18 percent.
What would be the value of this bond if it paid interest?annually?
What would be the value of this bond if it paid interest?semiannually?
Someone previously answered this with annually = $604.56 andsemiannually = $596.89 and the annual number is incorrect

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3.6 Ratings (421 Votes)

Annual compounding Information provided Par value future value 1000 Time 8 years Coupon rate 9 Coupon payment 0091000 90 Yield to maturity 18 The value of the bond is See Answer

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???(Bond valuation) A bond that matures in 8years has a ?$1,000 par value. The annual coupon interest rate is 9percent and the? market's required yield to maturity on a?comparable-risk bond is 18 percent.What would be the value of this bond if it paid interest?annually?What would be the value of this bond if it paid interest?semiannually?*Someone previously answered this with annually = $604.56 andsemiannually = $596.89 and the annual number is incorrect*