Answer to Question #50990 in Finance for Asif
the bond also will be paid, and if the market interest rate for bonds of
this quality is 10 percent per year. The market value of this bond will
P = C*((1 - (1 + i)^-n)/i) + M*(1 + i)^-n,
F = face values
C = coupon payment
N = number of payments
i = market interest rate
M = face value
P = market price of bond.
P = 400*((1 - (1 + 0.05)^(-20))/0.05) + 1000*1.05^(-20) = $5361.77
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