d. How is the value of a bond determined? What is the value of a 10-year, $1,000 par value bond with a 10% annual coupon if its required rate of return is 10%? A bond value is computed in view of the security's required rate of give back, the security's coupon rate, the recurrence of the coupon installments, and the development date of the security. The estimation of a security is controlled by marking down the normal future money streams utilizing the security's required rate of return. The required rate of return for a security can be controlled by summing of hazard free rate, the security's default chance premium, liquidity premium and development chance premium. By utilizing the required rate of return as rebate rate, each security coupon installment is marked down to current period. The bond's esteem is the total of marked down intrigue installments in addition to the reduced standard estimation of the bond. For a 10-year, $1000 par value with 10% annual coupon, its annual interest payment is $100. By discounting the future bond payments with the required rate of return is 10%, the value of the bond is the same as it face value of $1000. Using Excel to determine the bond's value