# Bonds price - Finance Bond Valuation by ClassOf1

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```									              Sub: Finance                                                                            Topic: Bond Valuation

Question:
Computation of price of the bond using given information.

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Calculate the price of the following bonds, where F is the face value, c is the coupon rate, N is
the number of years to maturity, and i is the interest rate (or discount rate, or yield):

a. F = \$100, c = 10%, N = 2, i = 8%

b. F = \$10,000, c = 6%, N = 3, i = 9%

c. F = \$1,000, c = 0%, N = 10, i = 6%

d. F = \$10,000, c = 7%, N → ∞ (bond never matures), i = 6%

Solution:
Using excel formula:

a. Price of the bond                    \$103.57
b.Price of the bond                    \$9,240.61
c.Price of the Bond                     \$558.39
d.Price of the bond= C/r               11666.67
Coupon Payment (c )                         700
Interest rate( r)                            6%

** End of the Solution **

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