What is the value of the bond when you purchased it

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You purchased an annual interest coupon bond one year ago with six years remaining to maturity at the time of purchase. The coupon interest rate is 9% and par value is $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 7%,

A. What is the value of the bond when you purchased it?

FV = 1000, PMT = 90, n = 7, i = 8, PV = 1052.06

B. What is the value of the bond when you sold it?

PV = 1052.06, PMT = 90, n = 7, i = 8, FV= 2606.10

Reference no: EM132516292

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