What is the present value of the bond?

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To determine the present value of a bond maturing in 12 years with a $1,000 par value and a 12% coupon rate, one must calculate the semiannual interest payments and discount them at the required return of 17%. The bond pays $60 every six months, and the present value is found by discounting these cash flows along with the par value at maturity. Resources for further learning on bond valuation include financial education websites and tutorials. Understanding discounting is crucial for evaluating bond investments effectively. Proper calculation will yield the bond's current market value based on these parameters.
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 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.
 
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