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R'Hllor
R'Hllor asked in Business & FinanceOther - Business & Finance · 8 years ago

Calculate the value of a non-callable bond..?

Calculate the value of a non-callable 30 year bond with a face value of $1,000 and a coupon rate of 8% compounded semi-annually if you expect 5% yield on the bond. The answer options are:

A. $592

B. $1,557

C. $776

D. $1,464

E. $1,821

Could someone please tell me how to calculate the answer? Thanks

3 Answers

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  • Don G
    Lv 7
    8 years ago
    Favorite Answer

    You need to determine the PV of the 1,000 face amount of the bond plus the PV of the Annuity of 40 (semi annual interest paid), both with N 60 and Rate 2.5%. That's 1,464.

  • preciado
    Lv 4
    4 years ago

    Callable Bond Calculator

    Source(s): https://shrinks.im/baYvp
  • smithwick
    Lv 4
    4 years ago

    Non Callable Bond

    Source(s): https://shrinke.im/a00hX
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