1,253.12
Using FV $1,000,
PMT $40, N 15 years,
P/Y2 for semiannual,
I/Y 5.5 percent.
Bond price (PV) = 1,253.12 must be solved.
Calculator Formula:
N = 30
PMT = 40,
I/Y = 2
FV = 1,000.
The result is PV = $1,253.12.
What Is Present Value (PV)?
A future sum of money or stream of cash flows' present value, or PV, is their current value at a particular rate of return. Future cash flows are discounted at the discount rate, so the higher the discount rate, the lower the present value of the future cash flows will be. Determining the appropriate discount rate is essential for appropriately valuing future cash flows, including earnings and debt obligations.
To learn more about PV from the given link.
https://brainly.com/question/20813161
#SPJ4
