Potter industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. the par value of the bond is $1,000. if the going annual interest rate is 8.6%, what is the value of the bond? round your answer to the nearest cent. do not round intermediate calculations.

$ 830.16 approximately to the nearest cent

Explanation:

Bond valuation is a technique for determining the theoretical fair value of a particular bond. Bond valuation includes calculating the present value of a bond's future interest payments, also known as its cash flow, and the bond's value upon maturity, also known as its face value or par value.

The attached sheets shows the bond value of Potter Industries at 10 years maturity.

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