Problem 71 Your answer is incorrect Try again BA Corp is iss

Problem 7.1 Your answer is incorrect. Try again. BA Corp is issuing a 10-year bond with a coupon rate of 7.84 percent. The interest rate for similar bonds is currently 7.44 percent. Assuming annual payments, what is the value of the bond? (Round answer to 2 decimal places, e.g. 15.25.) Value of bond 4558.1 Click if you would like to Show Work for this question:

Solution

$1,027.53

Computing Present value
using Financial calculator
PMT	78.4	(7.84% of 1000 that is par value)
N=	10
I/Y=	7.440%
FV=	1000
Press CPT and PV
PV=	$1,027.53