The WillMissThisClass Company issued a $1,000 par value, 20-year bond that has a 6% annual coupon. If the market is requiring a 7% rate of return on bonds of this level of risk: SHOW ALL WORK USING THE TI BAII Plus Calculator.
please use this example as a model
10 N
7 I/Y
50 PMT
1000 FV
Cpt PV
$859.53 is today’s value of the bond.
a) What is the current value of the bond?
b) Is the bond selling at a discount or at a premium?