Formula used :

P= C( 1-1/(1+i)^t / i ) + F / (1+i )^t

Face bond is $1000

Q4

Cox Pays 11% annual interest on the issued bonds, which are due to be repaid after 10 years. If the discount rate on similar bonds is 8%

1- Find the present value of the bond now?

1 P=C (1+i)' i + F (1+i) Formula used: P= C( 1-1/(1+i)^t/i) + F/ (1+i)^t Face bond is $1000 Q4 Cox Pays 11% annual interest on the issued bonds, which are due to be repaid after 10 years. If the discount rate on similar bonds is 8% 1- Find the present value of the bond now