Calculate the value of a $1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12 percent The required return on similar risk bonds is 20 percent ...

Computation of Bond Value Face value 1000 Coupon rate 12 annually Quarterly c ...

Calculate the value of a $1,000 bond which has 10 years until maturity and pays quarterly interest

Question:

Calculate the value of a $1,000 bond which has 10 years until and pays quarterly interest at an annual rate of 12 percent. The required return on similar-risk bonds is 20 percent.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...