The TSR is selling a bond investment from its portfolio to generate cash to make payments to retirees for the coming year. It plans to sell $100 million of face value. Corporation bonds that it purchased 10 years ago. The bond pays interest twice each year. The coupon rate is 8.6 percent. If the current market interest rate is 4.5 percent and there are exactly 10 years left until maturity, how much will the retirement system be paid for the bond? (Be sure to show all your work, including the factors you used to determine the value of the bond.)

****is this correct??

Input
Par value of Bond		$ 100,000,000
Coupon Rate		8.60%
Interest Payments per year		2
Rate per coupon = coupon rate / # payments per year		4.30%
Years to maturity		10
Periods to maturity = years * # payments per year		20
Market Rate at time of offering		4.50%
Market Rate per coupon = coupon rate / # payments per year		2.25%
1. Coupon = par value * coupon rate / # payments per year		$ 4,300,000
=pv(rate,nper,pmt,fv,type)
2-b Bond value at market rate		$132,725,610.36