to going annual interest rate, PMT as the annual coupon payment (calculated as the annual coupon Interest rate times the face value of the bond), and PV as the stated maturity value. Once those Inputs are entered in your financial calaulator, you can solve for PV, the value of the bond. Remember that the signs for PMIT and PV should be the have an opposite sign. Typically, you would enter PMT and FV as positive numbers, so PV would be shown as a negative value. The negative sign means that you are pu bond, so the purchase price of the bond is paid out of your funds (thus the negative sign) and is received by the issuing firm (o positive flow to the fnrm) same, so PV w Note that we the value of a semiannual bond you must make the following changes: N should reflect the number of interest payment periods so multiply years to reflect the periodic going rate of Interest so divide the going annual Interest rate by 2, and PMT should reflect the perlodic Interest payment so divide the annual interest payment by most bonds pay interest on a semiannual basis. Therefore, to calculate the number of interest payment perlods so multiply years to matunty times 2, /YR should s value assuming coupon interest payments were paid annually: however, 2. For floxed-rate bonds it's important to realize that the value of the bond has a(n SB relationship to the level of interest rates. If interest rates rise, then the value of the its maturity value at maturity. A Selectbond is one that sells above its par value. This situation occurs whenever the going rate of interest is below the coupon rate. Over time its value will Seves B approaching its maturity value at maturity. A par has bond issue otstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 7%, what is the value of the bond? Round your answer to the nearest cent. Do not round intermediate calculations. semiannual payments of $30, and a 10-year maturity. The par value of the bond going annual interest rate is 7%, what is the value of the bond? Round your answer to the nearest cent. Do not round intermediate calculations