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Bond price:

Knight, Inc., has issued a three-year bond that pays a coupon of 6.10 percent.
Coupon payments are made semiannually. Given the market rate of interest of 5.80
percent, what is the market value of the bond?
LO 2Solution: ti83
Years to maturity =n= 3 n=3*2
Coupon rate = C = 6.1% i=5.8
Frequency of payment =m= 2 pv=?
Semiannual coupon = $1,000 (0.061/2) = $30.50 pmt=30.5
Current market rate =i= 5.8% fv=1000
Present value of bond = PB? p/y= 2

Bond price:
BA Corp is issuing a 10-year bond with a coupon rate of 8 percent. Theinterest rate
for similar bonds is currently 6 percent. Assuming annual payments, what isthe
value of the bond?
LO 2Solution: ti 83
Years to maturity =n= 10 n=10
Coupon rate = C = 8% pv=?
Annual coupon = $1,000 0.08 = $80 pmt=80
Current market rate =i= 6% fv=1000