Problem 6-2 Bond valuation: Annual interest. Calculate the value of each of the bonds shown in the following table, all of which pay interest annually. Solution $1,000 11% Bond A Par value Coupon interest rate Years to maturity Required return Coupon payment Present value Bond B Par value Coupon interest rate Years to maturity Required return Coupon payment Present value $1,000 16% 16 $900 10% Bond C Par value Coupon interest rate Years to maturity Required return Coupon payment Present value 7% Bond D Par value Coupon interest rate Years to maturity Required return Coupon payment Present value $500 6% 13 8% $1,500 8% Bond E Par value Coupon interest rate Years to maturity Required return Coupon payment Present value 10 5%