Bond Valuation Bond Valuation

Why does the value of the bond continue to increase over time?

Is this bond currently selling for a premium or a discount?

Coupon Rate

Required Return

Frequency of coupon payments

Par value

Years till maturity:

$19$

$15$

$10$

$5$

$1$

Bond Valuations

This bond has $20$ years to maturity

Coupon rate $,8\mathrm{.}00\%$

Current required return $7\mathrm{.}00\%$

Semi Annual interest payments

Par value $$1,000\mathrm{.}00$

Find the value of this bond for each of they years to maturity listed.

Why does the value of the bond continue to decrease over time?

Is this bond currently selling for a premium or a discount?