A bond with a par value of $5,000 is quoted at 107.793. What is the dollar price of the bond? $5,389.65 O $4,821.95 $5,338.32 O $5,358.85 XO $5,425.58

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.