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    acctgirl29's Avatar
    acctgirl29 Posts: 1, Reputation: 1
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    #1

    Jul 19, 2009, 03:46 PM
    Bond Valuation
    I need to find the book value and the market value for a bond. I've never had to determine that when the market rate isn't given and I can't find any examples in my text... Any help would be appreciated! Here are the facts...

    Face value = $75 million
    Coupon = 8%
    Sells at 93% of par

    Does this mean that the market value is $69,750,000 (75000 bonds * 93%)?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jul 20, 2009, 10:38 PM
    Quote Originally Posted by acctgirl29 View Post

    Does this mean that the market value is $69,750,000 (75000 bonds * 93%)??
    Yes. You're lucky. Most problems just say 93 and don't bother with the % sign. At least you got a hint. ;)
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