Find the price for the bond in the following​ table:  ​(Round to the nearest​ cent.)
Par Value
Coupon Rate
Years to
Maturity
Yield to
Maturity
Price
​$1 comma 000.00
5​%
25
10​%


We can calculate the price of the bond using the formula for the present value of a bond, which consists of two parts: the present value of the coupon payments and the present value of the par value at maturity.

### Bond Price Formula:
\[
\text{Bond Price} = \left( C \times \frac{1 - (1 + r)^{-n}}{r} \right) + \left( \frac{F}{(1 + r)^n} \right)
\]
Where:
- $ C $ is the annual coupon payment = $ \text{Coupon Rate} \times \text{Par Value} $
- $ r $ is the yield to maturity per period (as a decimal)
- $ n $ is the total number of periods (years to maturity)
- $ F $ is the face (or par) value of the bond

### Given Values:
- **Par Value** ($ F $) = $1,000.00
- **Coupon Rate** = 5%, so the annual coupon payment ($ C $) = 5% of $1,000 = $50.00
- **Years to Maturity** ($ n $) = 25 years
- **Yield to Maturity** ($ r $) = 10% = 0.10 (decimal form)

Let's calculate the bond price using these values.The price of the bond is **$546.15**, rounded to the nearest cent.

Would you like further details or explanations on any part of this calculation?

Here are 5 related questions for further practice:
1. How does the price of a bond change if the yield to maturity decreases?
2. What happens to the bond price if the coupon rate increases to 7%?
3. How do you calculate the bond price for semi-annual coupon payments?
4. What is the relationship between bond prices and interest rates in the market?
5. How does the number of years to maturity affect the bond price?

**Tip:** Bond prices move inversely to changes in interest rates. When interest rates rise, bond prices fall, and vice versa.

Find the price for the bond in the following table: (Round to the nearest cent.) Par Value: $1,000.00, Coupon Rate: 5%, Years to Maturity: 25, Yield to Maturity: 10%

Learn how to calculate the price of a bond with a $1,000 par value, 5% coupon rate, 25 years to maturity, and a 10% yield. This tutorial walks through the present value formula, helping you understand bond valuation and finance concepts.

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