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line\"> <Bart’s Moving Company bonds have a 11% coupon rate. Interest is paid semiannually. The
bonds have a par value of $1,000 and will mature 8 years from now. Compute the value of
Bart’s Moving Company bonds if investors’ required rate of return is 9.5%

Solution

PMT = 55, FV = 1000, rate = 9.5%/2, N = 16

use PV function in Excel

value of the bond = 1082.75