A collection of verbal and symbolic assertions that specify how and why variables are related, and the conditions under which th
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Answer: $880.57
Explanation:
Assuming Par value of bond is $1,000.
Value of bond = (Coupon * Present value interest factor of annuity, no. years, required return) + Par Value/ (1 + required return)^ no. of years
Coupon = 5% * 1,000 = $50
Value of bond = (50 * 5.9713) + 1,000 / (1 + 7%)⁸
= 298.565 + 582
= $880.57
