Principles of Finance:

Bonds

1. Marks Private Limited is a growing organization in the industry and is showing progress in terms of capturing new markets in the industry. It has recently introduced a 5 year bond to arrange capital for entering into a new business. The coupon rate announced by the organization is 8% compounded annually with $1000 as a face value and 10% as yield to maturity. Calculate the

1. Present Value of the bond
2. Current yield associated with the bond

Also comment that how the present value of the bond will be affected if the yield to maturity will become same as a coupon rate.