CHAPTER 6 Interest Rates and Bond Valuation P616 Bond valuation: Annual interest Calculate the value of each of the bonds shown in the following table, all of which pay interest annually. 287 Bond Coupon rate 11% Years to maturity A B Required return 12% Par value $1,000 1,000 100 500 1,000 8 8 9 20 16 8 13 10 C D E 7 8 7 5 -17 Bond value and changing required returns Midland Utilities has a bond issue out- its $1.000 par value in 12 years. The bond has a cou