The value of a level-coupon bond is given by the formula below: PV + (1+r) '(1 + r) + . F + + (1+r)" (1+r) Show that this formula can be simplified to: PV = 0 C6--( +r)n]+ato) 1 F (1 + r)T Hence, calculate the value of a bond worth K10,000 that was bought at 5% level-coupon bond and is maturing in 18 years' time