Bond valuation 2 15 A 5 Years to maturity Par value of bond Coupon rate Frequency interest paid per year Effective annual rate $1,000.00 8.00% 2 7.44% 6 7 8 10 Formulas #N/A #N/A 13 Formulas #N/A 9 Calculation of periodic rate: Nominal annual rate 11 Periodic rate 12 Calculation of bond price: 14 Number of periods 15 Interest rate per period 16 Coupon payment per period 17 Par value of bond 18 Price of bond 19 20 0.00% #N/A $1,000.00 #N/A