[Manitock]

how to figure present value of bond interest payment,
Please send an illustration using bond face value and actual sale price ie; face value of 200,000 but sold at 177,230 @ 6% stated rate and 12 % market rate.
Please set up problem.
Thanks.

[morgaine300]

You need to figure out what the actual interest payments are going to be based on the stated rate. That is what you're figuring out the present value of.

Then figure the present value of those payments using the market rate, for the number of periods given. You've got 4 ways you can do a present value, using charts, with algebra equations, with a financial calculator, and with Excel. So how it's done depends on what method you're doing.

Having the sale price is not helping. In fact, there really isn't much need to figure out the present value of the interest payments when you've already got the sale price. Are you merely trying to get it out of habit cause that's what you think you're supposed to do, or do you just want it for some reason? (What is missing in that example is time, not the present value.)