1. The present value of the bond at issuance Present Value PV $ Periods N Interest I Payments PMT Future Value FV $ 0 Number of semi-annual payments made over 10 years = (10 X 2) % Annual interest rate at issuance paid semi-annually (Annual Interest Rate / 2) This bond makes regular semi-annual payments of interest (in dollars). Annual Interest Payment / 2). Future value in 10 yearsenter as a positive number (Always the Future or Face Value of the Bond) 2. The present value of the bond if overall rates in the market increased by 2% annually Present Value PV $ Periods Interest N I Payments PMT $ Future Value FV $ 0 Number of semi-annual payments made over 10 years = (10 X 2) % New annual market interest rate paid semi-annually = (New Annual Rate divided by 2) This bond makes regular semi-annual payments of interest (in dollars) = (Dollars Paid Annually divided by 2) Future value in 10 yearsenter as a positive number = (Always the Future or Face Value of the Bond and Never Change: