What is the present value of the bond?

[Gamma]

Hi every one,


I have this problem to solve at my work. I am not sure it belongs here or not.


Bond Valuation-Semiannual interest

Find the value of a bond maturing in 12 years with a $1,000 par value and a coupon interest rate of 12% (6.0% paid semiannually) if the required return on similar risk bonds is 17% interest (8.50% paid semiannually).
What is the present value of the bond?

How do I do this and also can anyone point me to any web sites that may be helpful in learning and doing these types of problems.

Thank you,

Gamma.

 

[fresh_42]

You use discounting to evaluate and compare the bonds:
https://en.wikipedia.org/wiki/Discounting