CFA Level 1
Fixed Income

Present Value of Corporate Bond

Hard Fixed Income Valuation Discounted Cash Flow

A corporate bond with a face value of $1,000 pays an annual coupon of 5% and has a maturity of 10 years. The current market interest rate for similar bonds is 4%. Assuming the bond pays coupons at the end of each year, what is the present value of this bond?

Hint

Submitted10.3K
Correct8.0K
% Correct78%