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You are considering purchasing a $1,000 bond that matures in 5 years and that has a coupon rate of 8% (paid annually). Your required rate of return is 10%. You already know that the present value of the bond at maturity is $621. To find the present value of the bond's payments, you find a value of 3.791 on a table that shows the present value of an annuity of $1. What is the total value of the bond?

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You are considering purchasing a $1,000 bond that matures in 5 years and that has a coupon rate of 8% (paid annually). Your required rate of return is 10%. You already know that the present value of the bond at maturity is $621. To find the present value of the bond's payments, you find a value of 3.791 on a table that shows the present value of an annuity of $1. What is the total value of the bond?






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