What is the present value of the bond?

  • Thread starter Gamma
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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 similiar 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 any one point me to any web sites that may be helpful in learning and doing these types of problems.

Thank you,


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